Tuition Deduction Value

• At the time of writing (July 2011), the IRS allows you to claim post-secondary tuition as an income tax deduction. You can write off any tuition that you pay, receive gifts to pay, or that you use student loans to pay. You cannot count tax-free assistance as tuition that you paid for the purposes of your income tax deduction. For example, the portion of your tuition that you pay with scholarships, Pell grants and employer-provided educational assistance cannot be used for the tuition and fees deduction.
  
  

Deduction Value of Books

• Books may or may not be deductible from your income taxes depending on your school's rules. The IRS only allows mandatory fees that are required for attendance to count as deductible. If your school mandates that you purchase specific materials from the school, you can include those costs. If, however, you can purchase the books for your classes anywhere, you cannot include those costs. For example, if you have to buy three textbooks, but you can choose to buy them at the school bookstore or elsewhere, you cannot deduct the costs even if you buy them from the school bookstore.
  
  

Additional Education Deduction Requirements

• You can only put down a deduction for the tuition and fees deduction if you cannot be claimed as a dependent by anyone else. For example, if your parents could claim you as their dependent, you could not claim a deduction. Even if the person who can claim you does not do so, the IRS still counts you as ineligible to claim a deduction on your tax return. You also cannot exceed the annual limits for your modified adjusted gross income in order to claim the deduction. As of 2011, if you file a single return, the maximum MAGI equals $80,000. If you file a joint return, the maximum MAGI equals $160,000.
  
  

Expenses You Cannot Include

• When you claim the tuition and fees deduction, the IRS severely limits the costs of post-secondary education costs that you can claim. Extra costs such as room and board, transportation to and from school and personal expenses cannot be included in your deduction. At the end of the year, your school should send you a Form 1098-T that shows you how much you were billed for qualifying expenses and how much you paid.