In July of 2017 I paid tuition for school in the United kingdom but I do not start school until January 29 2018, do I claim this on 2017 taxes?

[Coleen3 · Accepted solution]

Possibly.

What Expenses Qualify? The tuition and fees deduction is based on qualified education expenses you pay for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. Generally, the deduction is allowed for qualified education expenses paid in 2017 in connection with enrollment at an institution of higher education during 2017 or for an academic period beginning in 2017 or in the first 3 months of 2018. For example, if you paid $1,500 in December 2017 for qualified tuition for the spring 2018 semester beginning in January 2018, you may be able to use that $1,500 in figuring your 2017 deduction. 

There are potentially three ways to claim education expenses. Unfortunately, all require that the schools be eligible institutions. For an explanation see below. Double-check to see if your school qualifies.

American Opportunity Credit

The American Opportunity Credit can save you up to $2,500 in tax for the education expenses of each eligible student. To qualify, the student must pursue a degree at a school that is eligible to participate in the federal student aid program. The credit is only available to students in their first four years of attendance, who enroll at least half time for one academic period during the tax year and do not possess a felony drug conviction.

The credit amount includes the costs you incur for tuition, fees and course-related books, supplies and equipment necessary to attend the institution. If the credit amount exceeds the amount of tax you owe, you can receive up to $1,000 of the credit as a refund.

Lifetime Learning Credit

Lifetime Learning Credits are available to all taxpayers who attend at least one course during the year at an institution eligible to participate in the federal student aid program. It is not necessary that the student pursue a degree or certification to qualify, and it's available for any year of study. The credit covers the cost of tuition and fees plus any amount for books and supplies you are required to purchase directly from the school.

This credit is of particular value to those students attending postgraduate programs. As of 2017, the maximum benefit of the credit is $2,000. However, the lifetime learning credit is nonrefundable if it exceeds your tax bill for the year.

Tuition deductions

If you prefer to claim a deduction for your school expenses rather than a credit, the IRS allows you to deduct some of your tuition and fee payments. Since this is not an itemized expense, anyone can take the deduction. One thing to keep in mind is that you can never claim more than one educational tax benefit per student, per year. You cannot claim a tuition deduction and a tax credit in the same year for the same student.

Eligible educational institution. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. An eligible educational institution also includes certain educational institutions located outside the United States that are eligible to participate in a student aid program.