Q. Why do we not qualify for tuition and fees deduction (TFD)?
A. It depends on what you mean by "taxable income = $151,000".
In IRS lingo, "taxable income" is after standard or itemized deductions. That means you adjusted Gross income was over the TFD limit of $160,000 MAGI. Modified AGI incudes some addbacks to AGI. I think the student loan interest deduction is one.
- Taxpayers with a 2018, 2019 or 2020 annual modified adjusted gross income up to $65,000 ($130,000 if married filing jointly) may claim a maximum $4,000 deduction.
- Taxpayers with a 2018, 2019 or 2020 annual modified adjusted gross income between $65,001 and $80,000 ($130,001 and $160,000 if married filing jointly) may claim a maximum $2,000 deduction.
