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I paid my tuition and bought health insurance in 2021. I wonder if I can get a tax deduction

 
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2 Replies
MayaD
Expert Alumni

I paid my tuition and bought health insurance in 2021. I wonder if I can get a tax deduction

 

You might qualify for the education credit. An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund. There are two education credits available: the American Opportunity Tax Credit and the Lifetime Learning Credit.

 

Health insurance premiums are deductible on federal taxes as medical expenses if you itemize your deduction. However, you may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income. Medical and Dental Expenses

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Hal_Al
Level 15

I paid my tuition and bought health insurance in 2021. I wonder if I can get a tax deduction

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, 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.

 

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863

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