Tuition deduction

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Sahara
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Joined: Tue Dec 04, 2018 6:21 pm

Tuition deduction

Post by Sahara » Tue Dec 04, 2018 7:07 pm

I am a high school teacher and adjunct at a local community college in New York State. I receive a tuition benefit of 1 course per semester and am enrolled in an undergraduate accounting certificate program. In 2018 I paid $350 in fees and $362 in textbook costs. This includes $122 in fees for the course I will take in the spring of 2019.

I’ve been perusing the tax forms and instructions and come to the following conclusions. I would appreciate if anyone could confirm or deny them.

1) My AGI will be above $80,000, therefore I am unable to take the American Opportunity Credit, the Lifetime Learning Credit, or the Tuition and Fees Deduction on my Federal taxes for 2018.

2) I may be able to take a $200 college tuition credit on my NY State Taxes for 2018 based upon the $350 in fees I paid in 2018.

3) I cannot deduct textbook costs.

4) In 2019, I will retire and pay full tuition for the last course in the certificate program. My AGI for 2019 should be below $80,000. My fees should total $950.00. I may be eligible for a credit or deduction on my 2019 Federal taxes.

kaneohe
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Joined: Mon Sep 22, 2008 12:38 pm

Re: Tuition deduction

Post by kaneohe » Wed Dec 05, 2018 1:33 pm

https://www.irs.gov/pub/irs-pdf/p4012.pdf see pg. J2/J3

You are not eligible for AOTC but not due to income. It is only for 1st 4yrs of college which I assume you completed long ago.
Check out details of lifetime learning credit and tuition &fees deduction.

jebmke
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Joined: Thu Apr 05, 2007 2:44 pm

Re: Tuition deduction

Post by jebmke » Wed Dec 05, 2018 2:51 pm

kaneohe wrote:
Wed Dec 05, 2018 1:33 pm
https://www.irs.gov/pub/irs-pdf/p4012.pdf see pg. J2/J3

You are not eligible for AOTC but not due to income. It is only for 1st 4yrs of college which I assume you completed long ago.
Check out details of lifetime learning credit and tuition &fees deduction.
Not 100% sure but I think the tuition and fees deduction was a goner in the last tax bill.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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HueyLD
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Joined: Mon Jan 14, 2008 10:30 am

Re: Tuition deduction

Post by HueyLD » Wed Dec 05, 2018 3:01 pm

That deduction is not shown on 2018 schedule 1 of form 1040.

They extended the educator expenses deduction but not tuition/fees deduction.

kaneohe
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Re: Tuition deduction

Post by kaneohe » Wed Dec 05, 2018 3:04 pm

jebmke wrote:
Wed Dec 05, 2018 2:51 pm
kaneohe wrote:
Wed Dec 05, 2018 1:33 pm
https://www.irs.gov/pub/irs-pdf/p4012.pdf see pg. J2/J3

You are not eligible for AOTC but not due to income. It is only for 1st 4yrs of college which I assume you completed long ago.
Check out details of lifetime learning credit and tuition &fees deduction.
Not 100% sure but I think the tuition and fees deduction was a goner in the last tax bill.
jebmke.........I think you're right. Was thinking that way but then saw it included in the 2018 Pub 4012 w/o any DRAFT warnings so thought I was wrong. We're going to be in a pickle if the revs don't get done right.

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HueyLD
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Re: Tuition deduction

Post by HueyLD » Wed Dec 05, 2018 3:07 pm

Not to worry. They will get it right by Feb. 1. :)

jebmke
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Joined: Thu Apr 05, 2007 2:44 pm

Re: Tuition deduction

Post by jebmke » Wed Dec 05, 2018 3:08 pm

kaneohe wrote:
Wed Dec 05, 2018 3:04 pm
jebmke.........I think you're right. Was thinking that way but then saw it included in the 2018 Pub 4012 w/o any DRAFT warnings so thought I was wrong. We're going to be in a pickle if the revs don't get done right.
I'd have to work through the breakeven but with lower tax rates, the deduction isn't worth as much as it used to be, right? The LLC might be the preferred solution more often now.
When you discover that you are riding a dead horse, the best strategy is to dismount.

Sahara
Posts: 4
Joined: Tue Dec 04, 2018 6:21 pm

Re: Tuition deduction

Post by Sahara » Wed Dec 05, 2018 8:58 pm

Thanks kaneohe for the additional resource.

And thank you Jebmke and HueyLD for the suggestions. If I’m reading it correctly, the LLC is phased out at $67,000. I will keep it in mind for 2019.

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