I read that as of the end of 2016, tuition and fees for college students could not be included as a tax deduction. Is this true?

[rjs · Accepted solution]

UPDATE AS OF FEB. 25, 2018

The IRS is now accepting tax returns with the Tuition and Fees Deduction, and TurboTax has been updated to allow the deduction to be entered.

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UPDATE AS OF FEB. 13, 2018

The Tuition and Fees Deduction was extended for 2017 by the Budget Act that was passed and signed into law on Feb. 9, 2018. However, it will be at least several weeks before the IRS revises the forms and its computer programs, and the revised forms can be incorporated in TurboTax. If you think that the Tuition and Fees Deduction might give you a greater benefit than either of the education credits discussed below, your simplest course of action would be to wait to file your tax return until TurboTax has been updated for the retroactive changes.

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Original answer posted Nov. 20, 2017:

There are three different federal tax benefits for college tuition:

• American Opportunity Credit
• Lifetime Learning Credit
• Tuition and Fees Deduction

The Tuition and Fees Deduction expired at the end of 2016 and has not yet been renewed. That is what you read about at the link that you posted. The Tuition and Fees Deduction could still be extended for 2017 and later years. An extension is included in the tax reform bills currently being considered in Congress. There could also be a separate bill extending this and a few other expired provisions, as there has been in past years.

The American Opportunity Credit and the Lifetime Learning Credit are still in effect and are as permanent as anything in the tax law can be. Even if the Tuition and Fees Deduction is not extended, you will still be able to claim the American Opportunity Credit or the Lifetime Learning Credit for your daughter's tuition, as long as you meet the requirements for one of those credits.

You can only claim one of the three tax benefits for a particular student. For undergraduate tuition, the American Opportunity Credit usually provides the biggest tax benefit, unless your income is too high to claim it. After you enter your tuition expenses, TurboTax will automatically calculate which of the three tax benefits gives you the biggest tax reduction.

[DoninGA]

No

[jessiels24]

here is what it said "The Tuition and Fees Deduction is set to expire at the end of 2016. It allows you to deduct up to $4,000 from your income for qualifying tuition expenses paid for you, your spouse, or your dependents"

[DoninGA]

Where did you read this statement?  Please provide a link..

[Critter]

That deduction expired at the end of 2016 and has not been renewed as of today <a rel="nofollow" target="_blank" href="https://www.efile.com/new-tax-breaks-cuts-changing-extended-expired-laws/">https://www.efile.com/new...>

[DoninGA]

Note that the Tuition and Fees deduction expires December 31, 2017.
IRS website - <a rel="nofollow" target="_blank" href="https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc">https://www.irs.gov/c...>
That does not affect the AOC or Lifetime Learning Credit.

[Critter]

<a rel="nofollow" target="_blank" href="https://www.irs.gov/credits-deductions/individuals/tuition-and-fees-deduction-at-a-glance">https://w...>

[jessiels24]

here is the link. I thought that may mean that you can no longer count tuition as a tax credit after 2016. <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tips/college-and-education/deduction-for-higher-education/L0krerdUK"...>

[jessiels24]

it says at the top that it has expired

[Critter]

@DoninGA   your link is only about the credits not the deduction

[jessiels24]

it look like the tuition deduction is no longer effective. Critter#2 posted a link above. So this means I can not get any credit for paying my daughter's college tuition, correct?

[Critter]

If you don't qualify for the other credits then you are out of luck ... complain to your congress person.

[DoninGA]

I posted the wrong link in my comment above.  The correct link to the IRS website and note the date for expiration of the Tuition and Fees deduction - <a rel="nofollow" target="_blank" href="https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers">https://...>
"Q16. I am a student at an eligible educational institution. Can I claim the tuition and fees tax deduction and the AOTC?

A16. No. You can't claim the tuition and fees tax deduction in the same tax year you claim either the AOTC or the LLC. You must choose between taking an education tax credit or taking the deduction for tuition and fees. Also, you can’t claim the tuition and fees tax deduction if anyone else claims an education credit for you in the same tax year. Although the credit usually results in a greater tax savings, calculate both the tax credit and the deduction on the tax return to see which is better. Most tax software automatically compares the tax result for you. See Education Benefits, No Double Benefits allowed for more information. Note that the Tuition and Fees deduction expires December 31, 2017."

[Critter]

Interesting that the IRS has conflicting dates.