The Taxpayer Certainty and Disaster Tax Relief Act of 2020 repealed the tuition and fees deduction for tax years beginning after 2020.
The deduction was previously available to individuals in undergraduate, graduate and professional degree courses. There was no limit to the number of times you were able to claim this deduction.
This deduction may be beneficial if you didn't qualify for the American opportunity or lifetime learning credits.
What were the requirements to claim the Tuition and Fees deduction?
The following requirements must be met to claim the deduction:
- You paid qualified education expenses for higher education
- The expenses are for an eligible student
- The eligible student is yourself, your spouse or your dependent you claim on your tax return
Who could not claim the Tuition and Fees deduction?
You may not claim this deduction if:
- You file a married filing separate return
- Another person can claim you as a dependent (even if they do not claim you)
- Your Modified Adjusted Gross income exceeds the IRS limitations ($160,000 MFJ/$80,000 Single)
- The same expenses have been used to claim another deduction/credit
- You (or your spouse) were a nonresident alien for any part of 2021 and the nonresident alien didn't elect to be treated as a resident alien for tax purposes