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.
  1. 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.

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