Question

Celia has a son and a daughter in college. They have been students since tax year 2017. Celia’s son’s tuition is $6,600 and her daughter’s tuition is $1,875. Celia’s AGI for tax year 2020 is $79,800. Is Celia eligible to claim the tuition and fees deduction? a. Yes, Celia is eligible to claim the tuition and fees deduction. Her allowable deduction is $3,875.
b. Yes, Celia is eligible to claim the tuition and fees deduction. Her allowable deduction is $4,000.
c. No, Celia is not eligible to claim the tuition and fees deduction because it expired at the end of tax year 2017.
d. No, Celia is not eligible to claim the tuition and fees deduction because her income is too high.

Answer 1

Answer:

a. Yes, Celia is eligible to claim the tuition and fees deduction. Her allowable deduction is $3,875.

Explanation:

Since Celia's MAGI is less than $80,000 (assuming she is a single filer or head of household), she can claim up to $2,000 per year on each of her children's qualified tuition expenses. In this case, Celia can claim $2,000 from her son's tuition expenses and $1,875 form her daughter's.