The Taxpayer Relief Act of 1997 (Pub. L. No. 105-34, 111 Stat. 788) (TRA '97), provides new Educational Tax Benefits for eligible taxpayers. Specifically, TRA '97 added section 25A of the Internal Revenue Code providing the Hope Scholarship Credit and Lifetime Learning Credit, section 221 providing a Deduction for Student Loan Interest, and section 530 creating Education Individual Retirement Accounts ("Education IRAs").  Beginning in 2002, the Tuition & Fees Deduction is another deduction.

These provisions create several new tax benefits for families who are saving for, or already paying, higher education costs or are repaying student loans. In addition, TRA '97 extends the exclusion for employer-provided educational assistance and makes the rules for qualified state tuition programs more flexible. Whether a taxpayer may take advantage of these benefits depends on the taxpayer's individual facts and circumstances.

This website deals specifically with the Hope Scholarship Tax Credit, Lifetime Learning Tax Credit, and Student Loan Interest Deduction. Please refer to IRS Publication 970 "Tax Benefits for Higher Education" for details on these as well as other possible tax benefits. See Resources & Links page for additional information.