Yes, you can take distributions from your IRAs for qualifying education expenses without having to pay the 10% additional tax penalty. You may owe income tax on at least part of the amount distributed, but not the additional penalty. The amount of the distribution that is more than the education expense does not qualify for the 10% tax exception.
What tax deductions can be used for college education?
There is a limited deduction allowed for higher education and related expenses. In addition, business expense deductions are allowed, without a dollar limit, for education related to the taxpayer's business, employment included.
Is student loan interest tax deductible?
In certain instances, yes, although deductions need to adhere to a few guidelines. The deduction is also subject to income phaseouts.
The deduction ceiling is $2,500.
If you are a dependent, you may not claim the interest deduction.
You need to be the person liable for the debt and the loan must be purely for education.
Can I deduct for education that helps at the workplace?
If you are receiving this education to maintain or improve skills at your current job, yes, but not if it is to meet the minimum requirements.
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