|Tax Topic #457
||2008 Tax Year
Topic 457 - Tuition And Fees Deduction
You may be able to deduct qualified tuition and related expenses that you
pay for yourself, your spouse, or a dependent, as a tuition and fees deduction.
To determine whether your expenses are qualified, refer to Publication 970, Tax Benefits for Education. You do not have to itemize
to take this deduction. You can claim qualified tuition and fees as either:
(1) an adjustment to income, as directed above; or (2) a Hope or Lifetime
Learning credit, or (3) if applicable, as business expenses.
You cannot take the tuition and fees deduction on your income tax return
if your filing status is married filing separately, or if you are claimed
as a dependent on someone else's return. The deduction is reduced or eliminated
if your modified adjusted gross income exceeds certain limits, based on your
filing status. You cannot claim the tuition and fees deduction and a Hope
or Lifetime Learning credit for the same student. If the educational expenses
are also allowable as a business expense, the tuition and fees deduction may
be claimed in conjunction with a business expense deduction, but the same
expenses cannot be deducted twice.
You cannot claim a deduction or credit based on expenses paid with tax-free
scholarship, fellowship, grant, or education savings account funds such as
a Coverdell education savings account, tax-free savings bond interest or employer-provided
education assistance. The same rule applies to expenses you pay with a tax-exempt
distribution from a qualified tuition plan, except that you can deduct qualified
expenses you pay only with that part of the distribution that is a return
of your contribution to the plan.
Page Last Reviewed or Updated: December 22, 2008
Previous | Index | Next
You can search for information in the entire Tax Prep Help section, or in the entire site. For a more focused search, put your search word(s) in quotes.
Tax Topic Categories | FAQ Categories | Tax Prep Help Main | Home