Qualified Tuition Programs (QTP)
QTPs include state maintained plans such as Alabama's PACT Program. Families can use QTPs to save for college expenses. No tax is due unless the distribution is greater than the beneficiary's adjusted qualified higher education expenses. Families can use these QTPs to save for tuition and for room and board. Tuition and fees paid with money from a QTP are eligible for the Hope and the Lifetime Learning tax credits.
FOR MORE INFORMATION ON EDUCATIONAL TAX AND SAVINGS OPTIONS, VISIT THE FOLLOWING WEB SITES:
- Internal Revenue Service, Publication 970, Tax Benefits for Higher Education www.irs.gov/pub/irs-pdf/p970.pdf
- TCRS Tax Credit Reporting Service http://tcrs.com
- For general information on TRA97 or to view/print a copy of your University of Alabama 1098-T go to www.1098T.com