What does tuition and fees deduction mean?

userngc2876 · ‎February 2, 2021

KrisD15 · ‎February 2, 2021

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:

IRS Pub 970

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Hal_Al · ‎February 3, 2021

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.

What does tuition and fees deduction mean?