The tuition and fees deduction for individuals expired at the end of 2007. Recent legislation restored this tax break for 2008 and extended it for 2009.
You can deduct certain outlays for higher education if your income is within specified limits:
* $4,000 deduction. This maximum writeoff is available if your income this year is no higher than $65,000. For couples filing a joint return, the $4,000 deduction is available with income up to $130,000.
* $2,000 deduction. Even if your income is too high for a $4,000 deduction, you can deduct up to $2,000 spent on higher education if your income is in the $65,001-$80,000 range ($130,001-$160,000 for joint filers).
If you qualify for either the $2,000 or $4,000 deduction, you can take it regardless of whether you itemize deductions on Schedule A of your tax return.
