2 Replies
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
What does tuition and fees deduction mean?
It is the name of a deduction. It covers higher education expenses and allows you to possibly deduct a percentage of your education costs from your income before your tax liability is factored.
You would normally receive a 1098-T from the school you attended which reports the tuition and fees which were paid to the school.
You may click the link below to learn more:
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
What does tuition and fees deduction mean?
There are basically three different tax breaks for college education:
- American Opportunity (tax) Credit (AOTC) - a generous and partially refundable tax credit. This reduces your tax due and may actually increase your refund.
- Lifetime Learning Credit (LLC) - a non refundable tax credit that reduces your tax due
- The Tuition and Fees Deduction (TFD) - This is an adjustment to (deduction from) income before tax is calculated.
TurboTax (TT) will automatically pick which one is best for you. There is a way to change it, in TT.
Still have questions?
Make a post
Or browse the Forums