Adjustments to Qualified Expenses

Tuition and Fees Deduction

Click on each tab to view related content.

Adjustments to Qualified Expenses The amount of qualified tuition and related expenses must be reduced by certain scholarships, educational assistance allowances, and other amounts paid for the benefit of the student. Adjustments to the amount of qualified expenses must also be taken when the same expenses were used to determine any exclusion from gross income on amounts earned from:

• U.S. Savings Bonds used to pay higher education tuition and fees.

• Coverdell education savings accounts.

Claimed expenses must also be reduced by the interest portion of distributions from a qualified tuition program (QTP) if an exclusion is claimed with respect to the expenses also eligible for the tuition and fees deduction. Lastly, no deduction may be claimed with expenses that are also being used to claim the American Opportunity Credit or lifetime learning credit in the same year.