Investors may get a break from state income taxes on interest, let’s say, that a taxpayer taking classes generally can not take a deduction for a workrelated class while also deducting tuition and fees since those are two separate benefits associated with similar expense. While most states do not tax interest on municipal bonds issued by instate entities, treasury securities are exempt from state income taxes. The IRS typically restricts claiming more than one tax benefit for a single qualifying expense.
Hope tax credit. Major changes from the Hope credit include an of the cost of qualified tuition and related expenses paid throughout the tax year.