Can tuition deductions affect your AGI?

swimcatsmom
Tue, 01 Jan 2013 23:09:53 +0000

The tuition and deduction is not going to be as good a tax benefit as the tax credits. The credits reduce your tax. The deduction reduced your income. So a $2500 tax credit, if you are eligible for the max, would reduce your tax by $2500. A $4000 deduction would reduce your income by $4,000 which would reduce your taxes by $4,000 times your top tax rate (for instance if your tax rate is 25%, it would reduce your taxes by $1000).