IRS Publication 970

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DEFINITION of 'IRS Publication 970'

A document published by the Internal Revenue Service (IRS) that provides information on tax benefits available to students and families saving for college. It explains the tax treatment for the most common forms of college funding types, such as scholarships, fellowships and grants.


The document outlines three tax credits that can be taken advantage of: the American Opportunity Tax Credit, the Hope Credit and the Lifetime Learning Credit. In addition, IRS Publication 970 covers additional tax benefits, including student loan interest deductions and Coverdell education savings accounts (ESAs).

INVESTOPEDIA EXPLAINS 'IRS Publication 970'

The IRS typically restricts claiming more than one tax benefit for a single qualifying expense. This means, for example, that a taxpayer taking classes generally cannot take a deduction for a work-related class while also deducting tuition and fees because those are two separate benefits related to the same expense.

RELATED TERMS
  1. American Opportunity Tax Credit

    A tax credit that enabled more student and parents to pay for ...
  2. Hope Credit

    A nonrefundable education tax credit that can be claimed for ...
  3. Education Credit

    A type of tax credit available to students of a post-secondary ...
  4. Education Loan

    Money borrowed to finance education or school related expenses. ...
  5. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
  6. Coverdell Education Savings Account ...

    A tax-deferred trust account created by the U.S. government to ...
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