Does college fee / other education expenses come under tax deduction?
Hello,
I wanted to know whether fee paid to college come under tax deduction? Whether it is part of standard deduction? or itemized deduction? If yes, what other expenses can be claimed under tax deductions? Is there any limit on this expense?
Answers
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Hi kirankm361,
There are a couple of credits related to college tuition/expenses. These expenses will not be part of your standard or itemized deduction. However, they can qualify you for an education credit.
The following link has some quick information about the different education credits:
For other deductions, please log into your account with FreeTaxUSA and there is a section of Deductions/Credits. You can work your way through those screens to review the possible deductions you may qualify for.
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Education expenses are not considered in the standard or itemized deductions. However, if you, your spouse, or your dependents attended college, you may qualify for the American Opportunity Credit or the Lifetime Learning Credit. Which credit you qualify for will depend on your personal circumstances. We will automatically calculate which is the best credit to take for each student.
In order to enter your education expenses into the software, you would first need to request a Form 1098-T from your school. Then, in our software, enter the education expenses for you, your spouse, or your dependents on the College Tuition Expenses (Form 1098-T) screens (Deductions/Credits > College Tuition) .
If you would like to view the IRS link below, it details which education expenses qualify and do not qualify:
If you would like to better understand the differences between the two education credits, we recommend reviewing the two links below:
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How do I get to the screen to enter college room and board expenses? I have a 1098T entered. I took a distribution for my 529 plan and I qualify for the AOTC. Funds for the 529 plan were not used to pay for expenses that qualify me for the AOTC. I am trying to enter the room and board expenses yo show that all of these numbers add up properly. Or do I not need to do that? I did check the box that says that the funds from the 529 p[lan were not used to pay expenses that qualified for the AOTC. Thanks
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I was just reviewing unanswered posts and comments and see that you commented here. Because I was able to respond to you in the following discussion, I'm going to close this particular message.
https://community.freetaxusa.com/discussion/2089/need-assistance-with-aotc-when-there-is-a-529-distribution-covering-part-of-the-education-cost#latest0
