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Tuition and Fees Deduction

What are the rules for deducting tuition and fees education expenses?

You can take this deduction only if all five of the following apply:

  1. you paid qualified tuition and fees in the last tax year for yourself, your spouse, or your dependent(s)

     

  2. your tax filing status is any status but married filing separately

     

  3. your modified AGI is not more than:

     

    • $85,000 if single, head of household, qualifying widow(er)

       

    • $160,000 if married filing jointly

     

  4. you cannot be claimed as a dependent on someone's tax return

     

  5. you are not claiming an education credit for the same student.

 

 

What tax forms to deduct tuition and fees?

The adjustment is entered on line 35 of Form 1040. Also, the letter T should be entered in the space to the left of the amount. For the 2006 tax year, the most you can deduct is $4,000.

 

Qualified tuition and fees

Qualified tuition and fees are the amounts paid in the previous tax year for tuition and fees required for the student's enrollment or attendance during the previous tax year or for an academic period beginning in the first three months of the calendar year following the tax year at an eligible educational institution.

Amounts paid include those paid by credit card or with borrowed funds.

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