@roothog66 posted:You're 100% correct and the Lifetime Learning Credit has even lower thresh holds. You can still take a deduction for qualified education expenses, though. Yet another great reason not to waste that money on classes while you're still earning big checks.
I've often wondered why they can't set it up as a scholarship, though which would make the money tax free.
Root, I think at one time it actually was a scholarship, and I am sure now it benefits the MLB better. Put's the tax burden on the player.