The tuition and fees deduction is available as an alternative to the American Opportunity Credit or the Lifetime Learning Credit to taxpayers who qualify. The qualifications are similar to those of the American Opportunity Credit. For more information, see here.
The process for entering information for the Tuition and Fees Deduction is the same as for the American Opportunity Credit and Lifetime Learning Credit. After entering all the information required, you'll be told which of the three is best for this return.
To enter information for the Tuition and Fees Deduction in TaxSlayer ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Tuition and Fees Deduction - You'll be asked if you have entered all income and other adjustments. If so, click Yes.
- In the dropdown menu, select the individual in the return who is the student, then click Continue.
- Answer the four questions relevant to the AOC or LLC.
- Did the student receive Form 1098-T from this institution for 2020? - Answer YES or NO as appropriate.
- Did the student receive Form 1098-T from this institution for 2019 with Box 2 filled in and Box 7 checked? - Answer NO.
- Enter the educational institution's EIN, name, and address, then click Ok when finished. (The EIN entry field won't show if Form 1098-T wasn't received.)
- If you have more than one 1098-T to enter, click + Add Another Institution and enter it.
- Enter the adjusted qualified expenses, calculated as follows:
Form 1098-T Box 1 + any additional qualifying expenses - Form 1098-T Box 5 - any additional tax-free assistance received during the tax year - any additional tax-free assistance received after the tax year but allocable to the tax year - Form 1098-T Box 4 plus Box 10 (refunds) - any additional refunds received = adjusted qualified expenses