The federal relations team continues to read through the 5,600-page package and will provide updates with items of interest throughout the process.
Initially, we have come across these education-related provisions:
- Codifies IRSt Q&A regarding taxability of emergency financial aid grants. Excludes emergency financial aid grant funding from gross income calculations and from income considerations for Lifetime Learning and American Opportunity Tax Credit purposes (Div. N, Title II, Subtitle B, Sec. 277)
- Addresses potential confidentiality concerns arising from IRS providing tax data for FAFSA purposes (Div. N, Title II, Subtitle B, Sec. 284)
- Allows eligible U.S. students engaged in study abroad via distance education to continue to receive Title IV funds through either the end of the disaster declaration at the host institution or June 30, 2022, whichever is later. ( FF, Title I, Sec. 101)
- Higher income limits for the purposes of Lifetime Learning credit, deduction of qualified expense repealed (Div EE., Title I, Subtitle A, Sec. 104)
- Extension of exclusion of employer-paid student loan payments from taxable income, up to $5,250 (Div EE., Subtitle B, Sec. 120)