Publication 970
taxmap/pubs/p970-025.htm#en_us_publink1000178316You may be able to deduct qualified education expenses paid during
the year for yourself, your spouse, or your dependent(s). You cannot claim this
deduction if your filing status is married filing separately or if another
person can claim an exemption for you as a dependent on his or her tax return.
The qualified expenses must be for higher education, as explained later under
Qualified Education Expenses.
The tuition and fees deduction can reduce the amount of your
income subject to tax by up to $4,000.
This deduction is taken as an adjustment to income. This means
you can claim this deduction even if you do not itemize deductions on Schedule A
(Form 1040). This deduction may be beneficial to you if you do not qualify for
the American opportunity or lifetime learning credits.
 | You can choose the education benefit that will give you the
lowest tax. You may want to compare the tuition and fees deduction to the
education credits (chapters
2 and
3). |
Table 6-1 summarizes the features of the tuition and fees deduction.
taxmap/pubs/p970-025.htm#en_us_publink1000178323The following rules will help you determine if you can claim
the tuition and fees deduction.
taxmap/pubs/p970-025.htm#en_us_publink1000178324Generally, you can claim the tuition and fees deduction if all
three of the following requirements are met.
- You pay qualified education expenses of higher education.
- You pay the education expenses for an eligible student.
- The eligible student is yourself, your spouse, or your dependent
for whom you claim an exemption on your tax return.
"Qualified education expenses"
are defined on the next page. "Eligible students" are defined later under
Who Is an Eligible Student. A "dependent for whom you claim an exemption" is defined later
under
Who Can Claim a Dependent's Expenses.
taxmap/pubs/p970-025.htm#en_us_publink1000178328
Table 6-1. Tuition and Fees Deduction at a Glance
Do not rely on this table alone. Refer to the text for complete
details.
| Question | | Answer |
|---|
| What is the maximum benefit? | | You can reduce your income subject to tax by up to $4,000.
|
| Limit on modified adjusted gross income (MAGI) | | $160,000 if married filing a joint return;
$80,000 if single, head of household, or qualifying widow(er)
|
| Where is the deduction taken? | | As an adjustment to income on
Form 1040 or Form 1040A.
|
| For whom must the expenses be paid? | | A student enrolled in an eligible educational institution
who is either:
• you,
• your spouse, or
• your dependent for whom you claim an exemption.
|
| What tuition and fees are deductible? | | Tuition and fees required for enrollment or attendance at
an eligible postsecondary educational institution, but not including personal,
living, or family expenses, such as room and board.
|
taxmap/pubs/p970-025.htm#en_us_publink1000178330You cannot claim the tuition and fees deduction if any of the
following apply.
- Your filing status is married filing separately.
- Another person can claim an exemption for you as a dependent
on his or her tax return. You cannot take the deduction even if the other person
does not actually claim that exemption.
- Your modified adjusted gross income (MAGI) is more than $80,000
($160,000 if filing a joint return).
- You (or your spouse) were a nonresident alien for any part
of 2010 and the nonresident alien did not elect to be treated as a resident
alien for tax purposes. More information on nonresident aliens can be found in
Publication 519, U.S. Tax Guide for Aliens.
- You or anyone else claims an American opportunity or lifetime
learning credit in 2010 with respect to expenses of the student for whom the
qualified education expenses were paid.
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