Question About Tax Credits and Deductions for Students

[AmandaS1989]

So when I file my 2015 tax return I will be claiming the student loan interest deduction for myself. I will also be claiming my younger brother who is a full-time student as a dependent. Can I also claim the tuition and fees deduction for him along with either the AOTC or the LLC? I couldn't find anything that said I couldn't but I just want to be sure.

[seattlecyclone]

See Publication 970.

No Double Benefit Allowed

You cannot do any of the following.

• Deduct qualified education expenses you deduct under any other provision of the law, for example, as a business expense.
• Deduct qualified education expenses for a student on your income tax return if you or anyone else claims an American opportunity or lifetime learning credit for that same student in the same year.
• Deduct qualified education expenses that have been used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or a qualified tuition program (QTP). For a QTP, this applies only to the amount of tax-free earnings that were distributed, not to the recovery of contributions to the program. See Coordination With Tuition and Fees Deduction in chapter 8. Qualified Tuition Program, later.
• Deduct qualified education expenses that have been paid with tax-free interest on U.S. savings bonds (Form 8815). See Figuring the Tax-Free Amount in chapter 10. Education Savings Bond Program, later.
• Deduct qualified education expenses that have been paid with tax-free educational assistance, such as a scholarship, grant, or assistance provided by an employer. See the following section on Adjustments to Qualified Education Expenses.

You can claim the deduction or the credit for him, but not both. Run the numbers both ways and see which way is better. At lower incomes, the credits usually win.

[AmandaS1989]

Okay thanks seattlecyclone. I will definitely do that.