Deduction For Higher Education Expenses

Through 2007, an above-the-line deduction is allowed for qualified higher education expenses (tuition and related expenses) paid by a taxpayer for himself or a dependent.

The maximum deduction of $4,000 is allowed for single filers with AGI below $65,000 and for joint filers with AGI below $130,000. A reduced deduction of $2,000 is available for single filers with AGI over $65,000 but under $80,000, and for joint filers with AGI over $130,000 but under $160,000.

If you claim either the Hope Credit or the Lifetime Learning Credit, you may not take this deduction.