TAILIEUCHUNG - Tax Benefits for Education For use in preparing 2011 Returns

One of the main tasks of economics is to explode the basic in- flationary fallacy that confused the thinking ofauthors and statesmen from the days ofJohn Law down to those of Lord Keynes. There cannot be any question of monetary reconstruction and economic recovery as long as such fables as that of the blessings of 'expansion- ism' form an integral part ofofficial doctrine and guide the economic policies of the nations. None of the arguments that economics advances against the inflationist and expansionist doctrine is likely to impress demagogues. For the demagogue does not bother about the remoter consequences ofhis policies. He chooses inflation and credit expansion although he knows that. | Department of the Treasury Internal Revenue Service Publication 970 Cat. No. 25221V Tax Benefits for Education For use in preparing 2011 Returns Get forms and other information faster and easier by Internet Contents What s New. 2 Reminders. 2 Introduction . 2 1. Scholarships Fellowships Grants and Tuition Reductions. 4 Scholarships and Other Types of Educational 2. American Opportunity Credit. 8 Can You Claim the What Expenses Qualify .9 Who Is an Eligible Who Can Claim a Dependent s Figuring the Credit . . 14 Claiming the When Must the Credit Be Repaid Recaptured . 16 Illustrated 3. Lifetime Learning Credit. 20 Can You Claim the What Expenses Qualify .21 Who Is an Eligible Who Can Claim a Dependent s Figuring the Credit . . 24 Claiming the When Must the Credit Be Repaid Recaptured . 25 Illustrated 4. Student Loan Interest Deduction. 30 Student Loan Interest Defined .30 Can You Claim the Figuring the Claiming the Deduction .34 5. Student Loan Cancellations and Repayment Assistance . 36 Student Loan Student Loan Repayment 6. Tuition and Fees Deduction. 38 Can You Claim the What Expenses Qualify .38 Who Is an Eligible Who Can Claim a Dependent s Figuring the Claiming the Deduction .42 When Must the Deduction Be Repaid Recaptured . 42 Illustrated 7. Coverdell Education Savings Account ESA . . . . . . . . 45 What Is a Coverdell Contributions. .46 Rollovers and Other 8. Qualified Tuition Program QTP . 55 What Is a Qualified Tuition How Much Can You Are Distributions Rollovers and Other 9. Education Exception to Additional Tax on Early IRA Distributions. 59 Who Is Mar 21 2012 Figuring the Amount Not Subject to the 10 Tax

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