Question

Mr. Jones is married and has Net Income For Tax Purposes of $70,000, none of which is employment income or income from self-employment. His 19 year old dependent son attends university. His wife has Net Income For Tax Purposes of $1,200, and his son has Net Income For Tax Purposes of $2,900. His son wishes to transfer his tuition credit to his father. His son paid $4,000 in tuition fees and $800 for textbooks.

REQUIRED: Determine the maximum amount of 2019 personal tax credits, including transfers from a spouse or dependant, that can be applied against federal Tax Payable by the taxpayer.

Answer 1

You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). You can't claim this deduction if your filing status is married filing separately or if another person can claim you as a dependent on his or her tax return. The qualified expenses must be for higher education, as explained later under Qualified Education Expenses .

What is the tax benefit of the tuition and fees deduction?

The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000.

This deduction is claimed as an adjustment to income on Schedule 1 (Form 1040 or 1040-SR). This deduction may be beneficial to you if you don't qualify for the American opportunity or lifetime learning credits.