What federal income tax form do I file to deduct education expenses?
Certain education expenses can be claimed on your 2010 federal tax forms to lower your tax liability. These expenses are claimed on your 1040 tax forms. You also need the 8863 tax forms for education credits.
Only certain types of education can be claimed on your 2010 federal tax forms.
Work related education expenses must be towards the profession you are currently in. If you work in the public relations field at your business, the classes you are taking must be in the public relations field. This also works if your business makes you take the classes. You also might need to take them to maintain your salary or position. This deduction does not work if it is to enter a new profession.
Student loan interest can also be deducted. If you made under $75,000, your can enter on your tax forms to get a lower tax liability. It can also be claimed on money paid on behalf of a spouse or anyone claimed as a dependent. Tuition and school fees can also be claimed. Only up to $4,000 can be written in, though.
The last education you can claim is the Lifetime Learning credit. It’s available for anyone going to at least one class during the tax year. Even those with felony convictions and students not working towards a degree can claim it on their federal tax forms. In years past, the Hope credit could be claimed, but not for the 2010 federal tax forms.
How to File
Tax forms 8863 is used for figuring out how much you can claim. Enter all your information in the appropriate section. After figuring out each credit you’re claiming, get the total at the bottom. Also, this section will help you calculate if you are eligible for the deduction.
Now take the final number and enter it on the 1040 tax forms along with your other deductions.