How does tuition and fees deduction work?

The Tuition and Fees Deduction is a financial benefit offered to taxpayers who have incurred educational expenses. It allows individuals to deduct a portion of the expenses paid to an eligible education institution from their taxable income.

The maximum amount of deduction that can be claimed under this provision is $4,000. This means that if you have paid more than $4,000 in tuition and fees, you can only deduct up to this limit.

The student who is benefiting from the education expenses can be the taxpayer themselves, their spouse, or a dependent that they claim on their tax return. This flexibility ensures that a wide range of individuals can benefit from this deduction.

To be eligible for the deduction, the education institution must meet certain criteria set by the tax authorities. This includes being a post-secondary institution that provides courses of instruction at the undergraduate or graduate level.

In addition to tuition fees, the deduction can also be claimed for certain other education-related expenses such as books, supplies, and equipment required for coursework. However, it's important to note that room and board expenses are not eligible for this deduction.