College tuition

[Redbeard876]

Working on the NY state tax portion. Question asks if we paid tuition in 2020. My son was in college, and my wife cosigned the loan for his tuition/books/supplies. Should I answer yes, or no on account of her not technically paying it directly?

[ErnieS0]

Yes. You are entitled to the New York college tuition credit or itemized deduction because your son was in college and your wife was the co-signer on the loan.

You are entitled to this credit or deduction if:

• you were a full-year New York State resident,
• you, your spouse, or dependent (for whom you have taken an exemption) were an undergraduate student who was enrolled at or attended an institution of higher education and paid qualified tuition expenses, and
• the student is not claimed as a dependent on another person's tax return.

Qualified tuition expenses

• Qualified tuition expenses include only tuition paid for the undergraduate enrollment or attendance of the student at an institution of higher education. This includes expenses paid from a qualified state tuition program (like New York's 529 College Savings Program).
• Qualified tuition expenses do not include:
  • tuition paid through scholarships or other financial aid that need not be repaid
  • amounts paid for room and board, and other similar personal or living expenses
  • amounts paid for books, equipment, and activities, even if required by the school

Amount of the credit or deduction

• The credit can be as much as $400 per student. If it is more than the amount of New York State tax that you owe, you can claim a refund.
• The maximum deduction is $10,000 for each eligible student. The college tuition itemized deduction may offer you a greater tax savings if you itemized deductions on your New York return.
• Use the worksheets in the instructions to compute your deduction and see if the credit or deduction is better for you. (See IT-272-I instructions)

Related Resource:

College tuition credit or itemized deduction