Education Benefits

Student Loan Interest Deduction

Student loan interest deduction begins to phase out for taxpayers with MAGI more than $85,000 ($170,000 for joint returns) and is completely phased out for taxpayers with MAGI of $100,000 or more ($200,000 or more for joint returns).

Qualified Higher Education Expenses for Purposes of 529 Accounts

The following provision changed due to H.R. 1, One Big Beautiful Bill Act:

Expands qualified higher education expenses to include qualified postsecondary credentialing expenses, such as tuition, books, supplies, or equipment required for enrollment. Continuing education expenses and exam fees to keep credentials current also qualify.

Expands definition of “qualified higher education expenses” to include additional categories of allowed expenses for students enrolled in or attending elementary or secondary private, public, or religious schools. Qualified expenses now include tuition, curriculum and curriculum materials, online educational materials, tutoring or educational classes outside of the home, including at a tutoring facility, fees for tests related to college or university admission, fees for dual enrollment in an institution of higher education, and educational therapies.

Both changes apply to 529 distributions made after July 4, 2025.