Tuition and Fees Deduction
Taxpayers can deduct up to $4,000 in qualified tuition and related expenses paid during the tax year. The amount of the deduction is determined by the taxpayer's filing status, MAGI, and other factors.
Form 8917, Tuition and Fees Deduction, will help you compute the taxpayer's Modified AGI for this deduction. The tax software will complete this part of Form 8917 automatically.
Leonard, a single taxpayer who had total income of $24,000, meets all the requirements to take the deduction. He paid $4,427 in tuition and fees. Because his gross income is well below the MAGI limit, he would be able to deduct the maximum amount ($4,000) for his tuition and fees payments.
Juanita is married but uses the Married Filing Separately status. She cannot deduct any tuition and fees.