Tax deduction for wife going back to school to pursue a second degree

[rahul319]

My will be leaving the workforce and she will be going back to pursue a nursing degree. Can I write off tuition since I will be paying for it? Also will the fact that she already has a bachelors degree affect any potential tax deduction since she will be pursuing an additional degree?

[rjs · Accepted solution]

You will be able to get a deduction or credit for your wife's tuition. You and your wife should be filing jointly, so it doesn't matter which one of you pays the tuition. If you file separately you cannot claim any deduction or credit for tuition.

Since she has a bachelor's degree, you will not be eligible for the American Opportunity Credit. You will be eligible for either the Lifetime Learning Credit or the Tuition and Fees Deduction. TurboTax will figure out which is better for you.

The deduction or credit is not a "write off" of the full amount of tuition. There are maximum amounts that can be claimed for the deduction or the credit. There are also income limits for both the deduction and the credit, so if your income is above the limits, you will not get any deduction or credit.

You can read all the details of the education benefits in IRS Publication 970, "Tax Benefits for Education," which you can download from the following link on the IRS web site.

https://www.irs.gov/pub/irs-pdf/p970.pdf

[Hal_Al]

The Lifetime Learning Credit is 20% of the qualified expenses (tuition, fees & course materials) paid up to $10,000. It is a direct reduction of you calculated tax and not just a deduction from income.

[timgaudet]

If I have paid tuition towards a second bachelor's degree, can I claim a deduction on my Massachusetts state tax return?

[Hal_Al]

@timgaudet  you're tagging on to a thread unrelated to MA.  You're unlikely to get an answer here.  You should post a new question.