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tsturman
New Member

Telling me to use standard deduction. I have a dependent in college is telling me $4000 deduction is better than the $2500 credit. How can that be when not itemizing?

Question is, how does $4000 deduction possible when I'm not itemizing?
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2 Replies
rjs
Level 15
Level 15

Telling me to use standard deduction. I have a dependent in college is telling me $4000 deduction is better than the $2500 credit. How can that be when not itemizing?

There are different kinds of deductions. The tuition and fees deduction is not an itemized deduction. It's what's called an "above-the-line deduction." You can claim the tuition and fees deduction even if you are not using itemized deductions.

 

Hal_Al
Level 15

Telling me to use standard deduction. I have a dependent in college is telling me $4000 deduction is better than the $2500 credit. How can that be when not itemizing?

There seems to be a part 2 to your question"

Why is a  $4000 deduction is better than the $2500 credit?

 

Not everybody gets the full $2500, if their tax has been reduce to 0.  But, with $4000 in expenses, you should get the $1000 refundable AOTC credit if the student is your dependent.  So there must be another reason. you're not getting the AOTC. 

See https://www.irs.gov/Individuals/AOTC

https://turbotax.intuit.com/tax-tips/college-and-education/what-is-the-american-opportunity-tax-cred...

https://ttlc.intuit.com/community/credits-and-deductions/help/who-is-eligible-to-take-the-american-o...

You can use this IRS tool https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

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