Income limits increased.(p136)
The amount of your student loan interest deduction for 2009 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $60,000 and $75,000 ($120,000 and $150,000 if you file a joint return). You cannot take a deduction if your MAGI is $75,000 or more ($150,000 or more if you file a joint return). This is an increase from the 2008 limits of $55,000 and $70,000 ($115,000 and $145,000 if filing a joint return). See chapter 5 of Publication 970 for more information. taxmap/pub17/p17-099.htm#en_us_publink1000209389
Students in Midwestern disaster areas.(p136)
The definition of qualified education expenses for the tuition and fees deduction is expanded for students in Midwestern disaster areas. See Students in Midwestern disaster areas
, for more information.
This chapter discusses the education-related adjustments you can deduct in figuring your adjusted gross income.
This chapter covers:
- Educator expenses,
- The student loan interest deduction, and
- The tuition and fees deduction.
You may want to see:
Publication 970 Tax Benefits for Education Form (and Instructions) 8917: Tuition and Fees Deductiontaxmap/pub17/p17-099.htm#en_us_publink1000172922
If you were an eligible educator in 2009, you can deduct up to $250 of qualified expenses you paid in 2009 as an adjustment to gross income, rather than as a miscellaneous itemized deduction. If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. However, neither spouse can deduct more than $250 of his or her qualified expenses. You may be able to deduct expenses that are more than the $250 (or $500) limit on Schedule A (Form 1040), line 21.taxmap/pub17/p17-099.htm#en_us_publink1000172923
An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who worked in a school for at least 900 hours during a school year.taxmap/pub17/p17-099.htm#en_us_publink1000172924
Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator. An expense does not have to be required to be considered necessary.
Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education.
You must reduce your qualified expenses by the following amounts.
- Excludable U.S. series EE and I savings bond interest from Form 8815. See Figuring the Tax-Free Amount in chapter 11 of Publication 970.
- Nontaxable distribution of earnings from a qualified tuition program (QTP). See Figuring the Taxable Portion of a Distribution in chapter 9 of Publication 970.
- Nontaxable distribution of earnings from a Coverdell education savings account. See Figuring the Taxable Portion of a Distribution in chapter 8 of Publication 970.
- Any reimbursements you received for these expenses that were not reported to you in box 1 of your Form W-2.
To claim the deduction, enter the allowable amount on Form 1040, line 23, or Form 1040A, line 16.