Is Tuition Tax Deductible?

[keithwalsh1]

I have heard many times that you can deduct tuition but I've been unable to find the specific tax reference to this and stipulations such as income. Would anyone be able to point me in the right direction? Thanks!

[JustBill]

Assuming you're speaking of college tuition, start here Tax Topics - Topic 457 Tuition And Fees Deduction

[kork13]

Originally Posted by keithwalsh1

I have heard many times that you can deduct tuition but I've been unable to find the specific tax reference to this and stipulations such as income. Would anyone be able to point me in the right direction? Thanks!

Yes, college tuition is tax deductible in line 34 of the Form 1040 (Tuition and Fees). However, most people will generally receive a better benefit by using Line 49 (Education Credits) for the American Opportunity or Lifetime Learning credits (you'll need to fill out the additional Form 8863). You should do the math both ways, and then determine which is more advantageous for you.

[keithwalsh1]

Excellent, thank you very much =).

[Bades]

I know I have filed for the American Opp. Credit in the past but it only is redeemable for your first four years of college. I took a 5th year(2011) to complete my degree, anything I can deduct from tution paid in my 5th year of college?

[Bades]

It appears since I've already gone through my 4 years of college, which is the constraint on the Americna Opp. Credit, I could file form 8917 and make a change directly to my AGI??

[kork13]

Originally Posted by Bades

I know I have filed for the American Opp. Credit in the past but it only is redeemable for your first four years of college. I took a 5th year(2011) to complete my degree, anything I can deduct from tution paid in my 5th year of college?

For college expenses beyond your 4-year undergrad, you can use the same form as the Amer. Opp. credit to file for the Lifetime Learning credit. It's not as generous, but still a credit vs. deduction. As I said above, best idea is to do the calculation both ways and see what's best for you.