College Deductions

[Katrina669]

I had to pay for a couple classes out of pocket in 2021. Is that considered a deduction? 

[DavidD66]

No, the tax deduction for tuition and fees expired on December 31, 2020.  However, there are two tax credits you may be eligible for:  The American Opportunity Credit and the Lifetime Learning Credit.  For more information on these credits, eligibility requirements, and other education tax breaks see the following TurboTax article: The Lowdown on Education Tax Breaks

[Hal_Al · Accepted solution]

You just enter you education info and TurboTax (TT) will choose the best credit.

I see you're using the self employed version of TT. If the classes were business related, that is they improve your current job skills, the tuition is deductible as a business expense, instead of taking an education credit.  Since that reduces your self employment tax, as well as income tax, it's frequently better. 

[Katrina669]

I’m self employed because I do doordash part time. But I am a full time teacher, and I paid over $2,000 for classes because financial aid wouldn’t cover. 

[JohnW152]

@Katrina669

Please clarify – what are you asking in your latest post?

As Hal_AI suggested, if you enter your educational expenses into TurboTax, the program will determine what credit you might be eligible for.

In TurboTax Online,

1. Click Pick up where you left off
2. Click Federal in left pane
3. Click Deductions & Credits tab at top
4. Scroll down to Education and click the Show more dropdown

From there, you can enter your relevant information.

Qualifying expenses include what you paid in tuition and mandatory enrollment fees to attend any accredited public or private institution above the high school level.

[xmasbaby0]

Your education expenses are not related to your self-employment income at all.   But you could seek an education credit such as the Lifetime Learning Credit for the classes you paid for.