Tuition and Fees Deduction
The qualified higher education expenses above-the-line deduction (adjustment) applies regardless of whether the education is work-related. Expenses above the maximum are only deductible as education expenses (itemized deductions subject to 2%.
Maximum
2011 – $4,000
Maximum Income Limit
- Max Adjustment is $4,000 – AGI <= $65,000 ($130,000 joint filers)
- Max Adjustment is $2,000 – AGI > $65,000 ($130,000 joint filers) and <= $80,000 ($160,000 joint filers)
- No Adjustment – AGI > $80,000 ($160,000 joint filers)
Restriction on Deduction
A taxpayer is not eligible to claim the deduction if the expenses were applied to either:
- The American Opportunity Credit and/or Lifetime Learning Credit
- Non-Taxable Education Savings Account distributions
Forms
Publication 970 – Tax Benefits of Education
