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Education AGI Deduction

Caution

This deduction was repealed, effective with 2021 returnsWe have retained this chapter for reference for pre-2021 returns.

Overview

  • Allowed in 2002 through 2020
  • Expenses Same definition as for education credits
  • Maximum Deduction –
    • Joint
      • AGI $130,000 or less = $4,000 or
      • AGI $130,001 - $160,000 = $2,000
      • AGI above $160,000 = $0
    • Others
      • AGI $65,000 or less = $4,000 or
      • AGI $65,001 - $80,000 = $2,000
      • AGI above $80,000 = $0
  • MS, Dependent of Another, non-resident aliens not allowed
  • No Double Benefit

Related IRC and IRS Publications and Forms (2020 and prior)

  • Pub 970 - Tax Benefits for Education
  • Form 8917 - Tuition and Fees Deduction
  • IRC Sec 222

For tax years 2002 through 2020 a taxpayer (except as limited below) can deduct the qualified tuition and related expenses paid by the taxpayer during the tax year. (As extended by TIPA, PATH Act, and the Appropriations Act of 2020)

California Differences

California did not conform to this adjustment in years prior to 2021. If the amount qualifies as job related continuing education, deduct as a miscellaneous itemized deduction for state purposes.

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