11/27/2023 0 Comments Qualified education expenses computer![]() The deduction was 100% of qualified higher education expenses with a maximum of $4,000, $2,000, or $0, depending on the amount of your modified AGI and filing status. The phaseout for this deduction began at $65,000 ($130,000 for MFJ) for 2020. Such expenses must have been required for enrollment or attendance at an eligible educational institution. The tuition and fees deduction was an adjustment to income if you incurred qualified education expenses for you, your spouse, or your dependent. Tuition and fees are no longer tax deductible after 2020.”Kiddie tax” rules may apply.Given the tax changes in recent years, it’s important to check which college expenses are tax deductible or allow you to take a credit and which expenses no longer qualify. The availability of such tax or other benefits may be conditioned on meeting certain requirementsĮarnings are taxable to the minor.Contributions may qualify for a state-income-tax deduction.State tax deductions and/or credits vary.Earnings portion of distributions may be taxable in years the American Opportunity Credit or Lifetime Learning Credit is used if same expenses used to qualify for credit.Withdrawals may be free from federal income tax if used for qualified expenses.Earnings are generally free from federal income tax if used for qualified expenses before the student turns age 30 (exception for children with special needs ). ![]()
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