John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Education Deductions and Credits

There are multiple opportunities for tax relief related to expenses for higher education. Unfortunately many of these opportunities have income limits that prevent upper middle income and higher taxpayers from such relief.

• Tuition and Fees Deduction – an above the line deduction (through 2009 for now).

• Student Loan Interest Deduction

• Education Credits

• "Which credit is better? What is better the deduction or the credit?"

• "What defines a qualified educational institution?"

Don’t forget that you can not double dip on these deductions and credits, meaning that if you use certain expenses for one tax benefit item, you can not use the same dollars for a different benefit.

• Who claims the credit – me or my Harvard son?

• Education as a business expense.

• Education as a miscellaneous itemized deduction.