THE TUITION AND FEES DEDUCTION FOR HIGHER EDUCATION EXPENSES

This tax deduction is available to tax filers whose AGI is too high to claim either the American Opportunity Tax Credit or Lifetime Learning Tax Credit. The deduction is for qualified higher education expenses paid by the taxpayer during a taxable year.

To claim a Higher Education Tuition and Fee Deduction, the eligible taxpayer should use the new IRS Form 8917. Additional information for calculating a credit or deduction can be found in IRS Publication 970, which is available at www.1098T.com or www.irs.gov. Information specific to the continuation of the higher education tuition and fees deduction is also available from the IRS.

Value: The maximum deduction is $4,000 paid for qualified tuition and related expenses, less any non-taxable gift aid (e.g., grants and scholarships), for all eligible students in the family.

Income Limits: Single filers with an Adjusted Gross Income (AGI) between $65,000 and $80,000 and joint filers with an AGI between $130,000 and $160,000 are permitted a maximum deduction of $2,000. Filers with incomes exceeding $80,000 ($160,000 joint) are ineligible for deduction.

Eligible Education: Any course or courses in which a student is enrolled at an eligible educational institution. The deduction cannot be claimed for the same student in the same year as an American Opportunity Tax Credit or Lifetime Learning Tax Credit.