About Tax Deductions for College

There are a number of tax deductions that college students and parents of dependents can use to help bring down their taxable income. Scholarships, qualifying loans and tuition are just a few of the things that a student can deduct. For a student to claim a deduction, generally no one else can claim them as a dependent. However, a parent claiming a child as a dependent can enjoy some college deductions.
  1. Loan Deductions

    • If you are a student, you can deduct up to $2,500 on the interest of a qualifying student loan as long as no one claims you on their taxes and you are not married and filing separately. The income limit is $70,000 if single and $140,000 if married. The student loan must be used for education expenses.

    Work-Related Education

    • As a student, you can deduct the cost of work-related education as long as your employer has not reimbursed you and the education is either required by law or significantly improves your job skills.

    Tuition

    • Parents of dependents and students who are not dependents may qualify for a deduction of up to $4,000 for tuition and fees.

    Eligibility

    • In order to qualify for these tax deductions, a student must have either a high-school diploma or GED and be attending at least one college course.

    Ineligible

    • Room and board, transportation, medical expenses and insurance do not qualify as tax deductions.

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