(LifeWire) - Higher Education Tuition and Fees Tax Deduction Basics:
The Higher Education Tuition and Fees Tax Deduction can often aid taxpayers whose income is too high for the Hope Scholarship or lifetime learning credit. Taken as a deduction for adjustment to income, the tuition and fees tax deduction can decrease taxed income by up to $4,000. The credit includes online learning. Taxpayers can take advantage of this deduction for college-incurred costs without itemized deductions on Form 1040.
Qualifying for Higher Education Tuition and Fees Tax Deduction:
The short answer for determining who qualifies is that the taxpayer must pay the IRS-approved expenses for a post-secondary institute such as a university or vocational school; the taxpayer must pay the costs for an eligible student who is either the taxpayer, his or her spouse, or a dependent claimed as an exemption; and the taxpayer must not have a modified adjusted gross income of more than $80,000 ($160,000 if filing jointly) and cannot have sought either the Hope Scholarship or lifetime learning credit for the same year. Tuition and fees for enrollment and attendance are deductible; personal and living expenses are not. Generally, the IRS permits the deduction for expenses paid for an academic period beginning in the year of the tax return or for expenses paid that year in advance of the first three months of the following year. Another helpful feature is that even if the taxpayer uses a loan payment to cover the expenses, the taxpayer can still claim a tuition and fees deduction.
Learn More About the Higher Education Tuition and Fees Tax Deduction:
For more information about the Higher Education Tuition and Fees Tax Deduction, visit the: IRS website.
