Many changes related to education seemed to be on the horizon as the tax overhaul took shape. But, in the end, aside from adjustments related to 529 plans, Congress put aside most other education changes that been approved by the House of Representatives.
One important change would have repealed tax-free tuition waivers for graduate students, researchers and family members of university faculty and staff. Others would have ended the student-loan interest deduction of up to $2,500 per tax return and a tax benefit for employer-paid tuition.
In addition, Congress didn’t enact the House Republicans’ changes to the American Opportunity tax credit for college, Coverdell education savings accounts and the Lifetime Learning tax credit.
The overhaul did make an important change for people with student loans who die or become disabled: Loans that are forgiven due to death or disability are no longer taxable.
For more information, see IRS Publication 970, Tax Benefits for Education.
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