Itemized Deductions, Standard Deductions > Education & Work-Related Expenses

Previous Page | Table of Contents | Next Page Right Arrow

Frequently Asked Tax Questions

Itemized Deductions, Standard Deductions - Education & Work-Related Expenses

May I claim both my job-related education expenses (minus 2% of AGI) and one of the education credits on my tax return?
My employer included my graduate school tuition reimbursements on my W-2 as wages. Where do I claim these education expenses on my Form 1040?
Last year, my parents took out a student loan for me in their name and I also took out a student loan. My parents received Form 1098-E for their loan and I also received Form 1098-E for my loan. Can we both claim the interest from the loans on our tax returns? Last year, I was not their dependent.

Rev. date: 12/21/2012

American Opportunity and Lifetime Learning Credit

Deduction, Itemized

Form 1040 (Schedule A)

Lifetime Learning Credit

You cannot use the same educational expenses to claim both benefits (no “double benefit”).

You may choose to allocate some of your expenses to the deduction and others to the credit.
This can be desirable because a qualifying expense for one benefit may not be a qualifying expense for the other tax benefit. For example, the cost of course-related books ordinarily qualifies for the deduction, but not for the Lifetime Learning Credit, unless paid to the institution as a condition of enrollment or attendance. For the 2009, 2010, 2011, or 2012 tax year, course-related books may qualify for the American Opportunity Tax Credit.

Additional Information

Publication 970, Tax Benefits for Education Tax Topic 513, Educational Expenses Form 8863 (PDF), Education Credits (American Opportunity and Lifetime Learning Credits)

Rev. date: 12/21/2012

American Opportunity and Lifetime Learning Credit

Tuition and Fees Deduction

When your employer includes your tuition reimbursement in your wages, you are treated as paying the tuition yourself “out-of-pocket.” In determining where to claim a tax benefit for this educational expense, you would want to review all of the education credits and deductions available for the tax year. Many taxpayers qualify to take the expense as a miscellaneous itemized deduction on Schedule A (Form 1040) (PDF), Itemized Deductions.

You may also need to attach Form 2106 (PDF), Employee Business Expenses.
This itemized deduction is subject to the 2% of adjusted-gross-income floor that applies to certain miscellaneous itemized deductions.

Additional Information

Instructions for Form 2106 (PDF), Employee Business Expenses Tax Topic 513, Educational Expenses Publication 970, Tax Benefits for Education,

Rev. date: 12/21/2012

Education Expenses

Interest You Can Deduct

Loan

Student Loan Interest Deduction

Student Loan Interest Statement (Info Copy Only)

Since you were not your parents' dependent when they took out the student loan, the interest they paid on the loan does not qualify for the student loan interest deduction.

The student loan interest payments you made on the student loan you took out on your behalf are eligible for the student loan interest deduction, provided all the other requirements are met.
In order for a taxpayer to claim a deduction for student loan interest, the loan must be incurred for the taxpayer, the taxpayer's spouse, or a person who was the taxpayer's dependent when the taxpayer took out the loan.

Additional Information

Tax Topic 456, Student Loan Interest Deduction Tax Topic 505, Interest Expenses Publication 970, Tax Benefits for Education,

Previous Page | Table of Contents | Top of Page | Next Page Right Arrow

Frequently Asked Tax Questions

Itemized Deductions, Standard Deductions - Education & Work-Related Expenses

May I claim both my job-related education expenses (minus 2% of AGI) and one of the education credits on my tax return?

My employer included my graduate school tuition reimbursements on my W-2 as wages. Where do I claim these education expenses on my Form 1040?

Last year, my parents took out a student loan for me in their name and I also took out a student loan. My parents received Form 1098-E for their loan and I also received Form 1098-E for my loan. Can we both claim the interest from the loans on our tax returns? Last year, I was not their dependent.