2020 education deduction

[RocketmanG80]

I am being denied getting an education deduction by the software.  I pulled the IRS Form 8917 and confirmed I should be qualified.  Upon looking at the TT Student Information Worksheet, there is a note saying that I am not qualified because my income exceeds 80K, which is does not.  

[MayaD]

For 2020 tax year, taxpayers must meet the following income requirements to be eligible for the Tuition and Fees Deduction:

• Taxpayers with a modified adjusted gross income of $65,000 or less ($130,000 if married filing jointly) may claim a maximum $4,000 deduction.

• Taxpayers with a modified adjusted gross income between $65,001 and $80,000 ($130,001 and $160,000) may claim a maximum $2,000 deduction. 

Modified adjusted Gross Income can be defined as your household's adjusted gross income with any tax-exempt interest income and certain deductions added back. The Internal Revenue Service (IRS) uses MAGI to establish if you qualify for certain tax benefits.

For MAGI calculation please check What Is the Difference Between AGI and MAGI on Your Taxes?

[RocketmanG80]

Thanks for the response.  I think my problem was using my AGI instead of MAGI.  One follow-up question.  I see my unemployment is not taxed, but if you add it back to the AGI, then I exceed the income threshold.  Does this sound right?  TIA

[ColeenD3]

Yes.

The law reads:

“(1) IN GENERAL.—In the case of any taxable year beginning in 2020, if the adjusted gross income of the taxpayer for such taxable year is less than $150,000, the gross income of such taxpayer shall not include so much of the unemployment compensation received by such taxpayer (or, in the case of a joint return, received by each spouse) as does not exceed $10,200. “(2) APPLICATION.—For purposes of paragraph (1), the adjusted gross income of the taxpayer shall be determined—

“(A) after application of sections 86, 135, 137, 219, 221, 222, and 469, and

“(B) without regard to this section.

Tuition-Section 222