Login
|
Home
|
About MEFA
|
Contact Us
Guidance Counselors
College and University Administrators
Plan by Age Group
Planning Essentials
Save for College
Financial Aid
Get a Loan
Calculators + Tools
Families with Pre-K - 8th Graders
Families with 9th - 12 Graders
Families with Undergraduate Students
Graduate Students
Saving Early
Scholarships, grants, and more
How to Apply for Financial Aid
Monthly Pay-as-you-go Plans
Loans
Tax Advantages
Hints and Tips
U.Fund College Investing Plan
U.Plan Prepaid Tuition Program
College Savings Art Competition
Learn about the application process
Begin the Application Process Now
Español
Find a Seminar
FAQs
Loans for Parents
Loans for Students
Tax Deductibility
Home Equity Option
Repaying Your Loan
FAQs
College Cost Estimator
Loan Comparison Chart(1)
Product Selection Tool
Financing College Calendar
Find Massachusetts Colleges and Universities
Glossary
MEFA Undergraduate Loan
MEFA Graduate Loan
MEFA U.Fund College Investing Plan
MEFA Student Alternative Loan
Saving Early
Scholarships, grants, and more
How to Apply for Financial Aid
Monthly Pay-as-you-go Plans
Loans
Tax Advantages
» Tax Advantages when Saving for College
» MEFA Home Equity Option
» Tax Credits
» Tax Deductions
Print Page
Email Us
Home
:
Planning Essentials
:
Tax Advantages
: Tax Advantages when Saving for College
Get tax advantages when you save for college.
Earnings from your
MEFA U.Fund
account grow federal and state tax-free. If you use the funds for eligible expenses such as tuition, fees, room and board, books, and equipment, no taxes will be due on withdrawal either.
You may also save up to $2,000 per year in a
Coverdell Education Savings Account
(Education IRA) with tax-free earnings on the account.
PLEASE NOTE:
You may not use both tax-free education savings and an education
tax credit
in the same year. In any given tax year you may either use savings from an Education IRA or you may benefit from the HOPE Scholarship or Lifetime Learning Credit.
We strongly recommend that you consult an expert tax advisor to discuss how the regulations apply to your particular situation, or that you review the tax laws and applicable regulations to determine whether the interest paid on your educational loan is deductible. MEFA cannot ensure that interest paid on individual loan(s) will be deductible.