Tax Preferences for Higher Education and Adult College Enrollment
Abstract
The federal government delivers substantial college aid through the tax code, after introducing education tax credits in 1998 and a tuition deduction in 2002. The design of the Lifetime Learning tax credit and the tuition deduction may make them particularly useful to older students. This paper investigates how these provisions have affected college attendance of individuals in their 30s and 40s. For most adults, there is no effect on college attendance. Among men whose 1998 educational attainment falls short of earlylife educational expectations, eligibility for an education tax preference is associated with a 2.5 to 3.4 percentage point increase in the probability of college attendance.Download Info
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Paper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 2010-11.Length: 41 pages
Date of creation: Sep 2010
Date of revision:
Publication status: Forthcoming in the National Tax Journal
Handle: RePEc:wil:wileco:2010-11
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Related research
Keywords: college finance; education tax credits; and college enrollment;Find related papers by JEL classification:
- H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-16 (All new papers)
- NEP-EDU-2010-10-16 (Education)
- NEP-LAB-2010-10-16 (Labour Economics)
- NEP-PUB-2010-10-16 (Public Finance)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Turner, Nick, 2010. "Why Don’t Taxpayers Maximize their Tax-Based Student Aid? Salience and Inertial in Program Selection," University of California at San Diego, Economics Working Paper Series qt0pb3f440, Department of Economics, UC San Diego.
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