Tuition and fees deduction financial definition of Tuition and fees deduction
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An expense allowed as a reduction of taxable income.The most common individual deductions are for home mortgage interest,ad valorem and sales taxes,moving expenses associated with a job, charitable giving, and health-care costs. Virtually all expenses associated with income-producing property are deductible, including noncash expenses such as depreciation. Virtually all operating expenses for a business are deductible, except that capital expenditures (a new roof, expansion of building, purchase of equipment) must be capitalized and depreciated over time unless falling within the Section 179 limits. Section 179 lets a taxpayer deduct as expenses certain things that would otherwise have to be capitalized.
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26 /PRNewswire-USNewswire/ -- There is good news for students and families filing taxes this year: the extension of the tuition and fees deduction and the tax permanency of 529 savings plans means greater opportunities to save at tax time.
The tuition and fees deduction is available this year to students and families who cannot claim the Hope Scholarship Credit or the Lifetime Learning Credit.
Two new above-the-line deductions that can provide tax savings are the tuition and fees deduction
for higher education and the educator expenses deduction for teachers.
The tuition and fees deduction, new for the 2002 tax year, can reduce the taxable income of taxpayers based on college tuition and fees paid during the tax year.
The tuition and fees deduction allows a taxpayer to deduct as much as $3,000 from his or her taxable income for tuition and fees paid for the taxpayer, his or her spouse, or his or her dependents.