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May 15, 2020
Question

I am going to school full time and paying for my tuition. I dont have large income or have any other credits listed, why am I not getting the tuition deduction

  • May 15, 2020
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2 replies

DavidS127
May 15, 2020

More information may help resolve your question.  For example, are a dependent on your parent's tax return, and do you have taxable income (line 11b of your Form 1040)?  Are you filing a married filing separately return or are you or your spouse a nonresident alien?

 

There are three basic education benefits related to tuition:  The American Opportunity Credit, the Lifetime Learning Credit, and the Tuition and Fees deduction.  

 

The American Opportunity Credit (AOC) is the most favorable, if you are pursuing a degree or other recognized education credential.  It has a "refundable" component, which means you get a credit even if you don't owe taxes.  If you paid tuition above and beyond what scholarships paid and are otherwise eligible, and otherwise qualify for this credit, it is the "way to go".  See the qualifications for the American Opportunity Tax Credit at this link.

 

The Lifetime Learning Credit is "nonrefundable" which means you only get the credit if you owe taxes. But, the eligibility is less strict than the AOC.  See the qualifications for the Lifetime Learning Credit at this link.

 

The Tuition and Fees Deduction is a deduction from income, not a credit, and is also fairly broad in terms of what qualifies.  See the qualifications for  the Tuition and Fees Deduction at this link.

 

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Hal_Al
Employee
May 15, 2020

"I dont have large income." 

 

Generally (there are exceptions), if your total income is less than $12,200, you will have no calculated tax liability  and a tuition deduction or credit will due you no good. 

 

If you are a student, over age 23, and are not claimed as a dependent by someone else (e.g. your parent) you may be eligible for the up to $1000 refundable American Opportunity (tuition) Credit (AOTC). That credit is not dependent on having either kids or earned income. You must be at least a half time undergraduate student. There's even a loop hole available to claim the credit, if you are on scholarship.

 

However,  a full time unmarried student, under age 24, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

 

Re: I am going to school full time and paying for my tuition. I dont have large income or have any other credits listed, why am I not getting the tuition deduction