Don't Miss the Tuition Deduction
You won't find a line on your tax return this year for the college tuition and fees deduction, but you still can claim this write-off.

I thought that Congress renewed the tuition and fees deduction this year, but there isn't any space on my tax form to report it. I thought that I would qualify for that deduction. How can I take the tax break when I file my taxes?
You're absolutely right. Congress did renew the tuition and fees deduction, but it acted so late in the year -- it wasn't signed into law until late December -- that the 2006 tax forms had already been printed. You'll need to follow special instructions to take the write-off because you won't find a separate line in the 1040 for the deduction.
If you file the paper forms, write "T" and enter your write-off on line 35, which is labeled "domestic production activities deduction." If you use tax-preparation software like TurboTax, be sure to download the most recent updates.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Because of the missing line on the tax form, this deduction is easy to overlook this year -- but can be quite valuable. If you paid college tuition for yourself, your spouse or a dependent in 2006, you may be able to deduct up to $4,000 in college tuition and fees -- which could lower your tax bill by up to $1,000 if you're in the 25% tax bracket.
To qualify for the full deduction, your adjusted gross income must be $130,000 or less in 2006 if married filing jointly ($65,000 or less if single). You can deduct up to $2,000 in tuition and fees if your joint income was $160,000 or less ($80,000 or less if single). There is no deduction if you earn more than that. You don't need to itemize to qualify.
This deduction can be helpful if you earn too much money to qualify for a Hope or lifetime learning credit, which are more valuable (you can't take the tuition deduction in the same year you take the Hope or lifetime learning credit). The Hope credit can lower your tax bill by up to $1,650 per child in the first two years of college; the lifetime learning credit can reduce your taxes by up to $2,000 after that. But you can only take these credits if you're married filing jointly and earn less than $110,000; or $55,000 for single filers.
For more information about these tax breaks for college tuition, see IRS Publication 970 Tax Benefits for Education. For more information about the filing rules for several last-minute tax-law changes, see the IRS's update.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
Stock Market Today: It's 'All Sectors Go' Ahead of Independence Day
The resilience trade continues to work, even for sectors and stocks with specific uncertainties.
-
Nissan Recalls Over 440,000 Vehicles for Risk of Engine Failure
Hundreds of thousands of cars are being recalled over safety concerns. Here's how to check if your vehicle is affected and what steps to take next.
-
Elon Musk and Most Taxpayers Don't Like What's in Trump's 'Big Beautiful Bill'
Tax Policy President Trump is betting big on his newest tax cuts being passed by July 4. But not everyone is on board.
-
2025 SALT Cap Could Hurt Top 'Hidden Home Cost'
Tax Deductions The GOP tax bill could make hidden homeowner costs worse for you. Here’s how.
-
No Social Security Tax Changes in Trump’s 'Big Bill'? What Retirees Need to Know
Tax Policy Eliminating taxes on Social Security benefits is missing from President Trump’s proposed tax overhaul. Here’s why and what an alternative offering could mean for retirement taxes.
-
Five Surprising GOP Senate Bill Tax Changes to Know
Tax Policy Senate Republicans proposed tax changes for Trump’s ‘one big, beautiful bill.” Some provisions have stirred debate.
-
$6,000 'Bonus' Tax Deduction Approved for Those Age 65 and Older
Tax Reform Under Trump’s ‘big bill,’ the U.S. Senate proposed a larger bonus tax deduction for older adults than the House. Will it be enacted?
-
Don't Miss These Four Tax Breaks for Americans Living Abroad in 2025
International Tax U.S. expats can reduce their tax burden by taking advantage of a handful of tax credits and deductions.
-
Summer Backyard Ideas With Added Tax Benefits for 2025
Tax Tips Find out how these summer 2025 home projects can help you save on taxes next year.
-
Why Your California Utility Bill Could Increase Under Trump's Tax Plan
State Tax Energy bills in the Golden State may shock you if Republican lawmakers in Congress remove certain energy tax credits through Trump's 'big, beautiful bill.'