How much of your tuition do you get back on taxes?

Question

I take online classes and am just curious what the difference normally is for the tax refund with classes. I claim myself and make around 24000 a year. Thank you! I am basically looking for a percentage of what you would get back from online tuition.....

Answer 1

I typically get back between 95-100% as long as your online tuition doesnt go above $2200. Mine has never gone above that amount but if it did, the percentages would start to drop. I hope this helps you out.

Answer 2

If you were a sophomore or freshman at 1.1.06 and you or your parents have only claimed the Hope Credit for you once before, you could claim that. You would have to be at least half-time, as defined by your school. You get a deduction straight off your tax bill of the first $1,100 plus 50% of the next $1,100. so your maximum deduction off your tax (not your income) is $1,650.

If you were a junior or senior at 1.1.06 you can claim the Lifetime Learning Credit (LLC). That is 20% of your costs up to $10,000. Potentially, then, you can get $2,000 off your tax bill. Usually, the Hope Credit is better for freshmen or sophomores, especially at your income level, but if your costs are high you might want to forego the Hope and take the LLC.

At $24,000 per year your income is not high enough to think about the tuition and fees deduction. That relief just reduces your income by the amount of the fees up to $4,000. At your income level your tax rate will be 15%, which is less than the LLC rate of 20%.

You should use the figure you get on your Form 1098T from your school (I assume the school is qualified to receive federal aid and that you are in a degree program for the Hope Credit). Other expenses such as books and other materials are not deductible, except as employment-related expenses on Schedule A - probably not worth even thinking about this year.

You can take the credits even if you funded the tuition through loans. Remember that any tax-free grants or scholarships received will restrict the reliefs you can claim. The figures I have given assume no grants or scholarships.

Answer 3

if it's tax deductible you should get the taxes rewarded back to you...