It seems the nation is so concerned about the high cost of higher education even the Internal Revenue Service is stepping in to provide a little relief. The IRS is not only administering a series of tax credits, but also giving students - or their equally strapped parents - a series of income tax deductions. Those attending distance learning program classes and traditional on campus schools should explore these credits.

It seems the nation is so concerned about the high cost of higher education even the Internal Revenue Service is stepping in to provide a little relief. The IRS is not only administering a series of tax credits, but also giving students - or their equally strapped parents - a series of income tax deductions. Those attending distance learning program classes and traditional on campus schools should explore these credits.

These days it's extremely difficult to get a degree without taking out a college loan. While the loans allow a grace period of six months after graduation before paying, with many of these loans now going into thousand upon thousands of dollars, they end up taking forever to re-pay. As of last year, the IRS has made it a little easier to pay off that debt. If you need more information about online college grant, look on the internet.

For starters, the IRS increased the number of people who can get the deductions by increasing what's called the phase out limit, i.e., how much you can earn and still be able to file for a deduction. The limit for an individual was $55,000 adjusted gross income for full deductions and from $55,001 to $70,000 for a percentage. For those filing joint returns, the cut offs were $110,000 and $145,000 respectively. Now they are $60,000 and $75,000 for single claimants and for those filing jointly the ranges are $120,000 and $150,000.

There are some other things to consider. First, one must attend accredited, "qualified" institute. The student must be taking at least a half-semester's course load. The university can be either an on campus or online college. It can also be an accredited trade school. On the plus side, the money from the college loan can be used to pay a fairly wide list of items, from tuition to transportation.

On the negative side, the IRS will not allow any deductions if the loan is from family. They also won't allow them if the loan is from an employment-based education program. There is also a cap on how much one can deduct with a max of $2,500 annually. There is an abundance of information about online college degree programs on the web.

From there, if a single person earns under $60,000 in the tax year in question, one should get a statement from the loaning institution. Break down what went to the principle from what was used to pay interest. Now deduct the interest paid utilizing a 1098-A form. If it's between $60,001 and $75,000, go to the IRS web site and learn a formula they provide to discern the percentage of interest that can be deducted. If filing a joint return, substitute the numbers provided above regarding the various phase out numbers.

There are other provisos one should always be mindful of, some of which can increase one's number of deductions. A solid suggestion is to find a qualified tax person to help with figuring out what's deductible and what's not.