Let’s say you have a son in college: You can only claim applicable education credits if you claim your son as a dependent. Can parents claim the Tuition and Fees Deduction? In general, you can only amend older tax returns going back three tax years. If you were eligible in 2018, you may be able to file an amendment with Form 1040X and claim this college tuition tax deduction. Note: For tax year 2018, the Tuition and Fees Deduction was made available retroactively. For now, it’s not available for the 2021 tax year unless Congress votes to extend it. It’s possible this benefit could be available for future tax years as it has been extended in the past. Right now, you can take the Tuition and Fees deduction for the 2020 tax year. It has been available for several years due to extensions that Congress has passed. Currently, the Tuition and Fees deduction is not a permanent part of tax code. If you heard something about this deduction going away, you might be wondering if tuition is deductible anymore. So, which one is the most financially beneficial? That will depend on your specific tax situation. There’s lots to consider there.įor example, the Tuition and Fees Deduction has a higher phaseout than the LLC, which means some taxpayers might not qualify for the lifetime learning credit but could still claim the Tuition and Fees Deduction. It’s important to note that the IRS doesn’t let you double up on these benefits. The difference between a credit and deduction is that a deduction reduces your income and a credit reduces the taxes you owe dollar-for-dollar. These education credits also can help you reduce the amount of tax you pay, but just in a different way.
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