What does tuition and fees deduction mean?

 
KrisD15
Expert Alumni

Education

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
Level 15

Education

There are basically three different tax breaks for college education:

  1. American Opportunity (tax) Credit (AOTC) - a generous and partially refundable tax credit. This reduces your tax due and may actually increase your refund. 
  2. Lifetime Learning Credit (LLC) - a non refundable tax credit that reduces your tax due 
  3.  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.