Do I have to itemize because of our education expenses?

Question

My husband and I both are attending college full time. We've never itemized our taxes before and are unsure if we have to itemize this year because we have Tuition/Book expenses. As far as I know we have not exceeded the Standard deduction amount based off our 1098-T's. But I also paid a significant amout of money this year in dental expenses.

So I have two specific questions:
1. Do Educational costs alone mean we should itemize?
2. If not, how do we decide if we should itemize?

Answer 1

You can take a Hope or LIfetime Learning credit, if you are eligible, without itemizing. Use form 8863.

In order to be deductible, your total medical expenses including the dental would have to add up to over 7.5% of your income - only the part OVER 7.5% could be deducted. Then your total itemized deductions, including the medical that's over 7.5% of your income, would have to be more than the standard deduction, which is $10,300 for a married couple filing a joint return.

Answer 2

No, you do not itmeize because of tuition expenses. They are claimed on the 1040. The dental expenses would have to be itemized on Schedule A. But beware, the first 7 1/2 percent of your adjusted gross income is not deductible so your expenses have to be pretty high compared to your income. I would recommend having yout taxes professionally prepared. It may cost a few dollars but the peace of mind would be worth it. Good luck.