Submitted By: someone
Answered: August 8, 2014 8:30 am

My daughter is a high school student and is also taking college courses. Can I deduct tuition?

There are several tax breaks for college tuition payments: an above-the-line deduction (this break expired at the end of 2013 but likely will be extended for 2014), education tax credits, an exclusion for interest on U.S. savings bonds that you redeem, and penalty-free withdrawals from IRAs. At tax time, review all of the available options (there are different income limits and other rules to consider) before making a choice of which break to use.

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Tax Glossary

Simplified employee plan (SEP)

IRA-type plan set up by an employer, rather than the employee. Salary-reduction contributions may be allowed to plans of small employers set up before 1997.

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