Tuition and Fees Deduction

The tuition and fees deduction, which allow a maximum deduction of $4,000, expired after the 2020 tax year. This means you cannot claim this specific deduction for tax years 2021 and later unless Congress extends it again. 

For Tax Years 2020 and Prior

The tuition and fees deduction is still applicable for the tax years 2020 and prior. For this deduction, qualifying expenses include tuition and fees for enrollment at an eligible institution for higher education that you paid for your own education, that of a spouse, or of a dependent. Personal, living, or family expenses, such as room and board, do not qualify.

Because the deduction is taken as an adjustment to income, you do not have to itemize deductions in order to claim it.

It might be advantageous to take this deduction if you do not qualify for the American Opportunity or Lifetime Learning credits. Note that you cannot claim the tuition and fees deduction in addition to another education credit. You should take whichever credit results in the lowest tax.

Eligibility for the tuition credit is subject to certain limits based on the filer’s modified adjusted gross income (MAGI). For example, the credit is not available to married couples who file jointly and earn more than $160,000, or to single filers and heads of household who earn over $80,000.

For more information about qualified education expenses, click here.

This entry was posted on Thursday, June 28th, 2018 at 5:58 pm and is filed under Credits, Deductions, Tax Related Questions, Using Priortax. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.