September 4, 2012 8:30 am

10 Ways to Pay for Education in a Tax-Advantaged Way

American opportunity tax credit for the first 4 years of higher education
Deduction for education that maintains or improves job skills
Exclusion of employer-paid education for job-related courses or training
Exclusion of up to $5,250 from employer education assistance plans
Lifetime learning credit for any higher education
Penalty-free IRA withdrawals
Tuition and fees deduction up to $4,000 for higher education (assuming this expired tax break is extended for 2012 as expected)
Tax-free interest on the redemption of U.S. savings bonds for higher education
Tax-free withdrawals from 529 plans
Tax-free withdrawals from Coverdell education savings accounts