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

Adjustments to Income

Tuition and Fees

Taxpayer Interview and Tax Law Application

Here is how a volunteer helped Glenda deduct the tuition and fees she paid for a class.

Sample Interview
Volunteer Says:   Glenda Responds:
 
Let's talk about your education-related expenses. Were you or someone else in your family going to school? I took one class in the fall.
 
You're filing as Head of Household and your income is below the limit for taking the full deduction. Do you have a receipt for the tuition payment? Yes, these are the receipts from City College.
 
I see $450 for tuition and $80 for books. Were you required to purchase the books through City College or could you have bought them elsewhere? Those books were written specifically for the course; I had to purchase them through the school when I registered and they were an enrollment requirement in the course.
 
OK, then we can include the books. That totals $530. I just need to ask a few more questions. Did you receive any funds from an educational assistance program from your employer? Yes, the Educational Assistance Program provided $100.
 
Did you make any tax-free withdrawals from a Coverdell educational savings account or another qualified tuition program, or from U.S. savings bonds? No.
 
Did you get any other nontaxable payments, not counting gifts, bequests, or inheritances, that were specifically for educational expenses? Well, my mom gave me $100 to help with tuition.
 
The $100 was a gift, so we don't count it. Your total payments were $530 and then we must subtract the $100 employer benefit. You can deduct $430 for tuition and fees. Do you have any questions about all this? No, I'm really glad I can deduct that.
 
There is also a credit for people who are paying for college expenses. You can take one or the other, but not both. When we get to the end of the return, I will ask you some more questions to figure out if the credit would be better for you than this deduction. Okay, I'd appreciate that.
 
Note on the intake and interview sheet that you have addressed this adjustment.