topic College Deductions in Education

College Deductions

Katrina669 — Sun, 23 Jan 2022 20:58:38 GMT

I had to pay for a couple classes out of pocket in 2021. Is that considered a deduction?

Re: College Deductions

DavidD66 — Sun, 23 Jan 2022 21:16:52 GMT

No, the tax deduction for tuition and fees expired on December 31, 2020. However, there are two tax credits you may be eligible for: The American Opportunity Credit and the Lifetime Learning Credit. For more information on these credits, eligibility requirements, and other education tax breaks see the following TurboTax article: The Lowdown on Education Tax Breaks

Re: College Deductions

Hal_Al — Sun, 23 Jan 2022 21:41:00 GMT

You just enter you education info and TurboTax (TT) will choose the best credit.

I see you're using the self employed version of TT. If the classes were business related, that is they improve your current job skills, the tuition is deductible as a business expense, instead of taking an education credit. Since that reduces your self employment tax, as well as income tax, it's frequently better.

Re: College Deductions

Katrina669 — Sun, 23 Jan 2022 22:59:07 GMT

I’m self employed because I do doordash part time. But I am a full time teacher, and I paid over $2,000 for classes because financial aid wouldn’t cover.

Re: College Deductions

JohnW152 — Sun, 23 Jan 2022 23:47:53 GMT

@Katrina669

Please clarify – what are you asking in your latest post?

As Hal_AI suggested, if you enter your educational expenses into TurboTax, the program will determine what credit you might be eligible for.

In TurboTax Online,

Click Pick up where you left off
Click Federal in left pane
Click Deductions & Credits tab at top
Scroll down to Education and click the Show more dropdown

From there, you can enter your relevant information.

Qualifying expenses include what you paid in tuition and mandatory enrollment fees to attend any accredited public or private institution above the high school level.

Re: College Deductions

xmasbaby0 — Mon, 24 Jan 2022 00:40:38 GMT

Your education expenses are not related to your self-employment income at all. But you could seek an education credit such as the Lifetime Learning Credit for the classes you paid for.