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February 18, 2021
Question

Can a retired person with a college degree get a tax break for graduate tuition? I have a 1098-T and no W-2 for 2020 but I'm not eligible for the tax break?

  • February 18, 2021
  • 1 reply
  • 0 views
- not eligible for deduction (unsure of wording)
- why?

1 reply

February 18, 2021

If your paid tuition was from pursuing the post-bachelor degree program like the graduate school, you will only qualify for the Lifetime Learning Credit or Tuition and Fees deduction.  You will not qualify for the American Opportunity Tax Credit which is only for those who pursue post-secondary program. 

 

The Lifetime Learning Credit is a nonrefundable credit meaning it only benefits you if you have a tax liability.  The Tuition and Fees deduction is used to reduce your income.  If you do not have any income and tax liability, you would not qualify for both of these tax breaks.  For more information, click here: Refundable vs Non-refundable credits