We are always happy to provide a second opinion to friends and family of existing clients. On a recent Second Opinion discussion, we were asked if college expenses are deductible.
College expenses are no longer tax deductible but some are eligible for a couple of tax credits: The American Opportunity Tax Credit and the Lifetime Learning Credit. Your tax preparer or tax preparation software will be able to tell you which you qualify for. The American Opportunity credit is more generous but has more specific requirements.
Be advised that only qualified education expenses such as tuition, fees, books, etc. are eligible for credit – NOT room and board, insurance, transportation, and so forth.
Now, tax laws are constantly changing, so, as always, discuss these and other tax-related questions with your tax professional.