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previous page Previous Page: Publication 970 - Tax Benefits for Education - How To Get Tax Help
next page Next Page: Publication 971 - Innocent Spouse Relief - Innocent Spouse Relief
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p970-056.htm#en_us_publink100021217

Glossary(p79)


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Glossary

The education benefits included in this publication were enacted over many years, leading to a number of common terms being defined differently from one benefit to the next. For example, an eligible educational institution means one thing when determining if earnings from a Coverdell education savings account are not taxable and something else when determining if a scholarship or fellowship is not taxable.
For each term listed below that has more than one definition, the definition for each education benefit is listed.
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Academic period:(p79)


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A semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. If an educational institution uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period.
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Adjusted qualified education expenses (AQEE):(p79)


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Qualified education expenses (defined later) reduced by any tax-free educational assistance, such as a tax-free scholarship or employer-provided educational assistance. They must also be reduced by any qualified education expenses deducted elsewhere on your return, used to determine an education credit or other benefit, or used to determine a tax-free distribution. For information on a specific benefit, see the appropriate chapter in this publication.
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Candidate for a degree:(p79)


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A student who meets either of the following requirements.
  1. Attends a primary or secondary school or pursues a degree at a college or university, or
  2. Attends an accredited educational institution that is authorized to provide:
    1. A program that is acceptable for full credit toward a bachelor's or higher degree, or
    2. A program of training to prepare students for gainful employment in a recognized occupation.
taxmap/pubs/p970-056.htm#en_us_publink100021221

Designated beneficiary:(p79)


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The individual named in the document creating the account/plan who is to receive the benefit of the funds in the account/plan.
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Eligible educational institution:(p79)


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 Coverdell education savings account (ESA). Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Also included is any public, private, or religious school that provides elementary or secondary education (kindergarten through grade 12), as determined under state law.
 Education savings bond program. Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions.
 Hope credit. See Education savings bond program above.
 IRA, early distributions from. See Education savings bond program above.
 Lifetime learning credit. See Education savings bond program above.
 Qualified tuition program (QTP). See Education savings bond program above.
 Scholarships and fellowships. An institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities.
 Student loan, cancellation of. See Scholarships and fellowships above.
 Student loan interest deduction. Any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Also included is an institution that conducts an internship or residency program leading to a degree or certificate from an institution of higher education, a hospital, or a health care facility that offers postgraduate training.
 Tuition and fees deduction. See Education savings bond program in this category.
taxmap/pubs/p970-056.htm#en_us_publink100021223

Eligible student:(p79)


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 Hope credit. A student who meets all of the following requirements for the tax year for which the credit is being determined.
  1.Did not have expenses that were used to figure a Hope credit in any 2 earlier tax years.
  2.Had not completed the first 2 years of postsecondary education.
  3.For at least one academic period beginning in the tax year, was enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential.
  4.Was free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the tax year.
 Lifetime learning credit. A student who is enrolled in one or more courses at an eligible educational institution.
 Student loan interest deduction. A student who was enrolled at least half-time in a program leading to a postsecondary degree, certificate, or other recognized educational credential.
 Tuition and fees deduction. A student who has either a high school diploma or a General Educational Development (GED) credential, and who is enrolled in one or more courses at an eligible educational institution.
taxmap/pubs/p970-056.htm#en_us_publink100021224

Half-time student:(p80)


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A student who is enrolled for at least half the full-time academic work load for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled.
taxmap/pubs/p970-056.htm#en_us_publink100021225

Modified adjusted gross income (MAGI):(p80)


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 Coverdell education savings account (ESA). Adjusted gross income (AGI) as figured on the federal income tax return, modified by adding back any:
  1.Foreign earned income exclusion,
  2.Foreign housing exclusion,
  3.Foreign housing deduction,
  4.Exclusion of income for bona fide residents of American Samoa, and
  5.Exclusion of income for bona fide residents of Puerto Rico.
 Education savings bond program. Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any savings bond interest exclusion and modified by adding back any:
  1.Foreign earned income exclusion,
  2.Foreign housing exclusion,
  3.Foreign housing deduction,
  4.Exclusion of income for bona fide residents of American Samoa,
  5.Exclusion of income for bona fide residents of Puerto Rico,
  6.Exclusion for adoption benefits received under an employer's adoption assistance program,
  7.Deduction for student loan interest,
  8.Deduction for tuition and fees, and
  9.Deduction for domestic production activities.
 Hope credit. See Coverdell education savings account (ESA) above.
 Lifetime learning credit. See Coverdell education savings account (ESA) above.
 Student loan interest deduction. Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any student loan interest deduction, tuition and fees deduction, or domestic production activities deduction, and modified by adding back any:
  1.Foreign earned income exclusion,
  2.Foreign housing exclusion,
  3.Foreign housing deduction,
  4.Exclusion of income for bona fide residents of American Samoa, and
  5.Exclusion of income for bona fide residents of Puerto Rico.
 Tuition and fees deduction. Adjusted gross income (AGI) as figured on the federal income tax return without taking into account any tuition and fees deduction or domestic production activities deduction, and modified by adding back any:
  1.Foreign earned income exclusion,
  2.Foreign housing exclusion,
  3.Foreign housing deduction,
  4.Exclusion of income for bona fide residents of American Samoa, and
  5.Exclusion of income for bona fide residents of Puerto Rico.
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Phaseout:(p80)


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The amount of credit or deduction allowed is reduced when modified adjusted gross income (MAGI) is greater than a specified amount of income.
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Qualified education expenses:(p80)


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See pertinent chapter for specific items.
 Coverdell education savings account (ESA). Expenses related to or required for enrollment or attendance of the designated beneficiary at an eligible elementary, secondary, or postsecondary school. Also includes contribution to qualified tuition program (QTP).
 Education savings bond program. Tuition and fees required to enroll at or attend an eligible educational institution. Also includes contributions to a qualified tuition program (QTP) or Coverdell education savings account (ESA). Does not include expenses for room and board. Does not include expenses for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program.
 Hope credit. Tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Student-activity fees and expenses for course-related books, supplies, and equipment are included only if the fees and expenses must be paid to the institution as a condition of enrollment or attendance. Does not include expenses for room and board (but see Students in Midwestern disaster areas under Qualified Education Expenses in chapter 2 for an exception). Does not include expenses for courses involving sports, games, or hobbies (including noncredit courses) that are not part of the student's postsecondary degree program.
 IRA, early distributions from. Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half time. Also includes expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance.
 Lifetime learning credit. Same as for Hope credit, except that courses may be taken either as part of a postsecondary degree program or taken by the student to acquire or improve job skills.
 Qualified tuition program (QTP). Tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution, plus certain limited costs of room and board for students who are enrolled at least half time.
 Scholarships and fellowships. Expenses for tuition and fees required to enroll at or attend an eligible educational institution, and course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. Course- related items must be required of all students in the course of instruction.
 Student loan interest deduction. Total costs of attending an eligible educational institution, including graduate school (however, limitations may apply to the cost of room and board allowed).
 Tuition and fees deduction. See Hope credit in this category.
taxmap/pubs/p970-056.htm#en_us_publink100021228

Recapture:(p81)


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To include as income on your current year's return an amount allowed as a credit or deduction in a prior year.
taxmap/pubs/p970-056.htm#en_us_publink100021229

Rollover:(p81)


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A tax-free distribution to you of cash or other assets from a tax-favored plan that you contribute to another tax-favored plan.
taxmap/pubs/p970-056.htm#en_us_publink100021230

Transfer:(p81)


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A movement of funds in a tax-favored plan from one trustee directly to another, either at your request or at the trustee's request.
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taxmap/pubs/p970-056.htm#TXMP5a5ed448
Pubs list Text DescriptionPubs list  
previous pagePrevious Page: Publication 970 - Tax Benefits for Education - How To Get Tax Help
next pageNext Page: Publication 971 - Innocent Spouse Relief - Innocent Spouse Relief
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication