Tuition and Fees Tax Deduction
Families may deduct as much as $4,000 from their taxes for tuition and fees paid
towards a college education. A tax deduction reduces the amount of income claimed
on annual income taxes. Depending on your federal tax bracket, the maximum deduction
of $4,000 can reduce your tax liability by as much as $800! Just try not to spend
all the savings on your summer vacation.
Your exact deduction depends on your amount of qualified expenses, including tuition
and required fees. Room and board, other living costs, and transportation expenses
don't count as qualified expenses.
Eligibility for Tuition and Fees Tax Deduction
To be eligible for the tuition and fees tax deduction, you must be enrolled in at
least one college course, and your income (or your parents'/guardians' income if
you are a dependent) must be less than $80,000 a year if filing singly or less than
$160,000 if filing jointly.
Your 1098-T statement, provided by your college, will help you determine if you
can claim a deduction. Colleges must send you a 1098-T statement each year by January
31.