Tuition and Fees Deduction


This tax deduction is available to students who are enrolled in at least one course at an institute of higher education. It is particularly helpful for students who may not qualify for other available education tax credits.


This tax deduction can reduce your taxable income by up to $4,000 (the equivalent of up to an $800 reduction in your tax liability, depending on your federal tax bracket). The amount you are eligible for depends on the amount of qualified tuition and related expenses paid. It is taken as an adjustment to your income, so you may claim this deduction even if you do not have itemized deductions on Form 1040, Schedule A.

Qualifications:

Bullet You must have qualified higher education expenses incurred during enrollment in at least one course of postsecondary education or professional development at an eligible institution of higher education.
Bullet Your modified adjusted gross income must be $80,000 or less if single, and $160,000 or less if married and filing jointly.
Bullet Qualified education expenses include: tuition, required course related expenses (books, supplies, equipment), and mandatory student activity fees (less the amount of certain scholarships and grants that the student may have received).
Bullet You may not claim both an education tax credit and the Tuition and Fees Deduction for the same student for the same year. However, you may claim a credit for one student and the Tuition and Fees Deduction for the other.
Bullet You may claim this deduction for yourself, your spouse, or someone whom you claim as a dependent on your tax return. However, if you are claimed as a dependent on another person’s tax return (e.g., your parents’ tax return), only the person who claims you can apply for the deduction.
Bullet You may not claim this deduction if your filing status is “married filing separately.”
Bullet You may not claim this deduction if you have deducted tuition and fees expenses under any other provision (such as a business expense).

How to Claim Your Benefits:

To determine your eligibility and claim education tax benefits, including the Tuition and Fees Deduction, you must file a federal income tax return. To calculate your deduction, use IRS Form 8917, Tuition and Fees Deduction, at www.irs.gov.


Tax information is provided for informational purposes only. Student Financial Aid Services, Inc. is not engaged in providing legal, accounting, or tax services. Please consult a tax professional, the Internal Revenue Service, or IRS Publication 970 for tax information and assistance. A U.S. Treasury regulation requires us to inform you that any U.S. tax advice contained in this communication (including any hyperlinks) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to any party, who is not the original and intended recipient of this communication, any transaction or matter addressed herein.