Wednesday, February 15, 2012

Which College Expenses Are Tax Deductible







If you're not one of the lucky few with a full scholarship or a rich relative willing to pay, you may find yourself shelling out big bucks to get through even a two-year college degree program. Luckily, some of those expenses are tax deductible.


Availability


You are eligible to deduct your college expenses if you or your spouse is a part-time student, full-time student or the parent of a dependent student. If you're unsure of eligibility for any of these deductions, check with the IRS or a certified accountant.


Lifetime Learning


As of the 2010 tax year, the Lifetime Learning credit has no time limit for claiming and can be for up to $2,000 of reduction in taxes per return. It can be claimed for any level of higher education.








Tuition and Fees


You may deduct up to $4,000 worth of tuition and fees for enrollment in technical schools, colleges and universities.


Student Loans


If you are paying back student loans (or even just paying the interest on non-subsidized loans), you may deduct up to $2,500 as of the 2010 tax year. Those with adjusted gross incomes of more than $75,000 or more than $150,000 if married and filing jointly do not qualify.

Tags: 2010 year, Lifetime Learning, more than