Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Adjustments to Income

Tuition and Fees

Determining the Best Benefit

If taxpayers claim the tuition and fees adjustment to income, they cannot claim an education credit. The education credits include the American opportunity and lifetime learning credits, which are discussed in more detail in the Education Credits lesson. For most taxpayers, the tax credit is more beneficial than the adjustment. However, it is important to calculate and compare the education benefits to determine which credit is better for the taxpayer.

Complete the entire tax return first using the tuition and fees deduction, then claiming the education credit. Compare the returns and choose the best credit for the taxpayer.

To compare the benefits see the Highlights of Education Tax Benefits chart in the Volunteer Resource Guide, Education Benefits tab.

Top of Form 8863, Education Credits.