The federal government has implemented several tax incentives to encourage education saving and ease the financial burden of paying for education expenses. The most important incentives include:
- 529 plans (Qualified Tuition Programs)
- Coverdell Education Savings Accounts (formerly Education IRAs)
- College Tuition Deduction
- Employer-paid Educational Assistance Programs
- Student Loan Interest Deduction
- American Opportunity tax credit (formerly the Hope tax credit) and Lifetime Learning Credit.