Tuition costs at public universities increased over 6% last year according to the College Board. In addition to rising tuition, your educational expenses might include books, activities fees, lab fees, and miscellaneous charges. Education tax benefits, including the Tuition and Fees Deduction, can help you cope with these climbing education costs.
Bank Atlantic
(727) 530-4782
2650 Roosevelt Blvd.
Clearwater, FL
BB&T
(727) 532-9610
5801 Ulmerton Rd
Clearwater, FL
Encore Bank
2973WestBayDr
2973 West Bay Dr
Clearwater, FL
Northern Trust
(727) 587-1100
525 Indian Rocks Road
Clearwater, FL
Old Harbor Bank
(727) 835-2265
715 Indian Rocks Rd. N
Clearwater, FL
Regions Bank
(727) 524-7898
13501 Icot Blvd Suite 106
Clearwater, FL
SunTrust Bank of Tampa Bay
(727) 588-7500
380 N Indian Rocks Rd
Clearwater, FL
Wachovia Bank
(813) 538-4545
2515 W. Bay
Clearwater, FL
New England Financial
(727) 581-3100
710 First Ave. SW
Clearwater, FL
EZ Money Loan Services
904-779-1785
5553 Beach Blvd
Jacksonville, FL
|
What is the Tuition and Fees Deduction?
The Tuition and Fees Deduction is a federal benefit created to help with education costs and can reduce your taxable income by up to $4,000.
Are You Eligible?
To be eligible for the Tuition and Fees Deduction, you, your spouse, or your dependent child must be enrolled in at least one class at an approved institution during the tax year. The IRS-approved institutions include nearly all colleges, universities, and vocational schools, including online and distance learning programs. You can claim the deduction for yourself as long as no one else claims you as a dependent. Married couples filing separately instead of jointly are not eligible for the Tuition and Fees Deduction.
How Much Can You Deduct?
The exact amount you can deduct depends on your family's income, your tuition costs, and any scholarships you receive. You can claim a deduction of up to $4000 if:
• You are single and your modified adjusted gross income (MAGI--found on line 38 of your
form 1040) equals $65,000 or less, or
•You are married, filing jointly and your MAGI equals $130,000 or less.
You can claim a deduction of up to $2000 if:
• You are single and your MAGI equals $80,000 or less, or
• You are married, filing jointly, and your MAGI equals $160,000 or less.
If your income is less that $57,000 for singles, or $113,000 for married couples filing jointly, you may be eligible for other educational tax credits such as the Hope Credit or the Lifetime Learning Credit. Keep in mind that you can only claim one deduction or credit for each educational expense. Determine which credits or deductions you are eligible for, calculate the amount
Are There Restrictions?
• You cannot claim this deduction for education expense that you didn't incur yourself-
-such as that covered by tax-free scholarships, grants such as the Federal Pell Grant,
or employer-provided education assistance.
• You cannot deduct education expenses that you deduct anywhere else on your tax return,
such as business expenses.
• You can only deduct the cost of tuition and approved fees. Books, software, room and
board, or other costs cannot be claimed under Tuition and Fees, although they might be
deducted elsewhere on your return. Consult your tax advisor.
Tips for Claiming Your Deduction
• Claim the Tuition and Fees Deduction on your 1040 tax form. Add your Tuition and Fees
Deduction in line 35, "Domestic production activities deduction". You don't need to
attach a form 8903.
• Because the Tuition and Fees Deduction is an income adjustment, you do not have to
itemize all your deductions on Schedule A of Form 1040 to take advantage of it.
If you have questions about the 1040 form or the Tuition and Fees Deduction, contact the IRS or a tax specialist. The Tuition and Fees Deduction can help you economize on education expenses. The money you save can make back-to-school shopping extra sweet next year.
Sources:
Internal Revenue Service. "Topic 457: Tuition and Fees Deduction"
The College Board. "Trends in Higher Education Pricing"
National Association of Student Financial Administrators
Federal Student Aid
Bank Atlantic
(727) 530-4782
2650 Roosevelt Blvd.
Clearwater, FL
|