So you'd end up paying 1.45% on the first $200,000 and 2.35% on the rest. The 0.9% Medicare surtax is a recent change and is intended to help pay for health reform. Investment income taxes: Capital gains, dividends and interest represent unearned income..
The tuition and fees deduction sounds good on the surface; it offers up to a $4,000 deduction. This option is open even if you donât itemize deductions. But since the deduction is for the taxpayer, not the student, it may not be the most beneficial for taxpayers with more than one student in the family.
You do not have to itemize to take the tuition and fees deduction. You claim the deduction as an adjustment to income on Form 1040 (PDF) or Form 1040A (PDF), U.S. Individual Income Tax Return. For more information regarding this deduction, the credits or education business expenses, refer to Publication 970.You cannot take the tuition and fees deduction on your income tax return if your filing status is married filing separately, or if you may be claimed as a dependent on someone else's return.opic 457 - Tuition and Fees Deduction. You may be able to deduct qualified tuition and related expenses that you pay for yourself, your spouse or a dependent as a tuition and fees deduction.