Form 8917 2022 Printable, Fillable PDF – Form 8917 is a tax form issued by the Internal Revenue Service (IRS) that a taxpayer must complete in order to be eligible for a tax deduction known as the tuition and fees deduction. It has been decided to expand the deduction to include eligible tuition and fees paid in the calendar years 2018, 2019, and 2020. Unless the deduction is reinstated, taxpayers will not be able to claim costs incurred after 2020 unless it is renewed.
Qualified educational costs are sums of money that are paid to schools of higher learning. The use of prepaid sums for academic terms that begin in the first three months of the following year and are paid throughout the tax year is also permitted. In the year of the academic term, amounts paid in a previous or future tax year are not eligible for a deduction since they were paid in a previous or future tax year. As an example, $2,000 paid in December 2020 for a course that starts in January 2021 qualifies for a deduction in 2020 but not in 2021 since the course begins in January 2020.
Books, materials, and equipment are considered mandatory fees if the money is needed to be paid to the university as part of the enrollment process for a recognized program. Additionally, nonacademic costs such as student activity fees or sports fees are covered as long as they are paid directly back to the university as a condition of participation in a qualifying program.
- Form 8917 is a tax form provided by the Internal Revenue Service (IRS) that is used in conjunction with Form 1040 and is used to claim the tuition and fees deduction.
- A taxpayer who claimed educational tax credits on Form 8863 is unable to claim the same educational costs as a tax deduction on Form 8917 if the taxpayer also claimed educational tax credits on Form 8863.
- The maximum amount of tuition and fees that may be deducted is $5,000.
Who Is Eligible To Submit Form 8917: Tuition And Fee Deduction?
A taxpayer, their spouse, or a claimed dependent on their tax return must have been enrolled in a qualifying educational institution during the tax year in question in order to be eligible for the tuition and fees deduction. Taxpayers who are eligible for the tuition and fee deduction will almost always have received a Form 1098-T from the accredited educational institution. The IRS recognizes that there are rare occasions on which a taxpayer may qualify even though they have not received a Form 1098-T; in these cases, the person must demonstrate eligibility when claiming the deduction. This is the case, for example, with nonresident aliens.
If you file your tax return as married filing separately, you will be ineligible for the tuition and fee tax deduction because of your marital status.
Which Individuals Are Unable To File Form 8917: Tuition And Fees Deduction?
It is necessary to distinguish between the following categories of people who are not qualified for the tuition and fee deduction:
- People who file their tax returns as married filing separately (MFS) are unable to claim the tax deduction.
- A taxpayer who has been listed as a dependant on someone else’s tax return is likewise unable to claim the tax deduction on his or her own tax return. In the case of an adult child who was claimed on their parents’ tax return, the adult child would be unable to file Form 8917. The parents, on the other hand, would be entitled to submit Form 8917 on their own personal tax return.
- An individual taxpayer who has a modified adjusted gross income, or MAGI, of more than $80,000 ($160,000 if filing as married filing jointly, or MFJ), is ineligible for the tax deduction (as computed on line 5 of Form 8917).
- Unqualified for the tax deduction is a nonresident alien who has not elected resident alien tax status and has not elected resident alien tax status.
- Any educational costs that were reimbursed by the IRS on Form 8863 for educational tax credits are ineligible for reimbursement on Form 8917, which is used to claim tax deductions on Form 8917.
The Form 8917, Tuition And Fee Deduction, And How To File It
Line 1 of Form 8917 contains vital information such as the student’s first and last names, Social Security number, and the amount of adjusted eligible expenditures paid by the student.If there is more than one qualified student, the amounts for each student are combined together and tallied on line 2 to arrive at the final figure (if not, copy the amount from line 1 to line 2). Line 3 of Form 8917 should be copied from line 3 of Form 1040, “Total Income.” Line 4 contains the adjustments to income from Schedule 1 (1040) that are used to compute modified adjusted gross income (MAGI). Line 4 should be subtracted from line 3 and copied to line 5. As previously stated, if the amount on line 5 is more than the MAGI cutoffs given above, the taxpayer will be ineligible for the deduction.
The maximum permitted deduction is $4,000 for a taxpayer whose modified adjusted gross income (MAGI) is less than $65,000 if single or $130,000 if married filing jointly. The maximum permitted deduction is $2,000 for a taxpayer whose modified adjusted gross income (MAGI) falls between the two thresholds (for example, between $65,000 and $80,000 if single). Line 6 of Form 8917 inquires as to whether the sum on line 5 is more than the lower limitations set out in the previous paragraph. If you answered yes, enter the smaller of the amount on line 2 or $2,000 in the box provided. If no, enter the smaller of the amounts in lines 2 or 4 as the amount to be paid. The amount on line 6 of Form 8917 is carried over to Schedule 1 of Form 1040, where it remains.