Is college tuition tax deductible? Yes, you can reduce your taxable income by up to $4,000

• College tuition and fees are tax deductible on your 2019 tax return.
• The deduction is worth either $4,000 or $2,000, depending on your modified adjusted gross income (MAGI) and filing status. Married couples filing separately are not eligible.
• You don’t have to itemize to claim the tuition and fees deduction.
• The deduction cannot be claimed in conjunction with other education-related tax credits.
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Americans can deduct qualified college tuition costs on their 2019 tax returns.

The college tuition and fees deduction was set to expire this year, but an 11th-hour spending bill signed by President Donald Trump on December 20 renewed the provision through 2020.

That means if you covered any of the costs of a degree program in which you, your spouse, or your dependent were — or are currently — enrolled, you could be eligible to reduce your taxable income by up to $4,000. The deduction is taken above-the-line, meaning you don’t have to itemize deductions to claim it. 

Your eligibility for claiming the tuition and fees deduction depends, in part, on your modified adjusted gross income (MAGI) and filing status.

Here’s how much the deduction is worth:

• $4,000, if your MAGI was less than $65,000 as a single filer or $130,000 as married filing jointly
• $2,000, if your MAGI was more than $65,000 but less than $80,000 as a single filer, or more than $130,000 but less than $160,000 as married filing jointly
• $0, if your MAGI was above $80,000 as a single filer or $160,000 as married filing jointly

Married couples filing separately are not eligible for the tuition and fees deduction.

Expenses covered under the deduction include anything related to coursework, including tuition, books, supplies, and equipment, that must be paid to the school as a condition of enrollment. Costs related to room and board, insurance, student health fees, transportation, or other personal living expenses are not eligible for the deduction.

If you maintain a 529 college savings plan and took distributions to pay for college expenses in 2019, you may still be able to claim the tuition and fees deduction, as long as the expenses you’re deducting were not paid for using those funds. Expenses that were paid for using a scholarship, grant, or employer assistance cannot be deducted.

You cannot claim the education-related tax credits, The American Opportunity Tax Credit and The Lifetime Learning Tax Credit, in conjunction with the tuition and fees deduction.

You’ll find more information about the qualified education expenses you paid for the year on Form 1098-T, which colleges and universities typically send to students by January 31 following the tax year.