the qualified expenses must be for higher education the tuition and fees deduction can reduce the amount of your income subject to tax by up to $ 4000 generally you can claim the tuition and fees deduction if all three of the following requirements are met1 you pay qualified education expenses of higher education2he tuition and fees deduction can reduce the amount of your income subject to tax by up to $ 4000 generally you can claim the tuition and fees deduction if all three of the following requirements are met 1
The American Opportunity Tax Credit (AOTC) is one of two tax credits available to students and those who claim them as dependents. It allows eligible students to reduce what they owe in taxes by up to $2,500 a year for tuition and related expenses.
Only one education credit is allowed per student per year, and the person whoâs claiming the credit must be the one whoâs claiming the student (e.g., parent or self). The income limit to receive the American Opportunity Tax Credit is $180,000 when filing jointly or $90,000 if you are single, head of household, or a qualifying widower. Note that the maximum credit is gradually reduced for those making between $80,000 and $90,000 or between $160,000 and $180,000 when married filing jointly.