On December 22, 2017, The Tax Cuts and Jobs Act was signed into law. The information in this article predates the tax reform legislation and may not apply to tax returns starting in the 2018 tax year. You may wish to speak to your tax advisor about the latest tax law. This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.
The deduction is limited both by filing status and Adjusted Gross Income (AGI). Unlike the other education tax incentives where the deduction is slowly phased out, this deduction is not allowed once the AGI limit is reached. Married individuals who file separately and taxpayers who are claimed as a dependent of another are not allowed to take this deduction.
Filing Status | AGI Limit | Max Deduction |
Joint | 130,000 | 4,000 |
Joint | 160,000 | 2,000 |
Others | 65,000 | 4,000 |
Others | 80,000 | 2,000 |
Since the expenses that qualify for this deduction are the same as those that qualify for the education credits, taxpayers may qualify for both and will be required to choose between the two. Each taxpayer’s individual circumstances must be taken into consideration before making the most beneficial decision. This office can assist you in making an informed choice.