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Higher Education Expense Deduction

For the years indicated below, taxpayers with qualifying incomes may deduct up to $3,000 in 2002 and 2003 and up to $4,000 in 2004 and 2005 for qualified tuition and related expenses. The maximum amounts allowed per year are noted below. The deduction is available even if the taxpayer does not itemize; however, the taxpayer cannot claim the Hope or Lifetime Learning tax credit for the same student in the same year.

  2002  2003  2004  2005 2006
Single tax filers with adjusted gross incomes up to $65,000$3,000$3,000$4,000$4,000$0
Joint filers with adjusted gross incomes up to $130,000$3,000$3,000$4,000$4,000$0
Single tax filers with adjusted gross incomes between $65,000 and $80,000$0$0$2,000$2,000$0
Joint filers with adjusted gross incomes between $130,000 and $160,000$0$0$2,000$2,000$0

Click here for details from the Internal Revenue Service website about Higher Education Expense Deductions.


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