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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

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