Tax Provisions

AJCU has worked extensively to maintain a number of tax provisions that have been important to our Jesuit institutions and to higher education throughout the years. By providing tax credits, deductions, and other benefits, primarily to middle class families, most of these provisions have assisted students and parents in offsetting the cost of higher education. Other provisions have benefited our institutions by incentivizing donations and by supporting research and development at our colleges and universities. For this reason, AJCU will continue to support the preservation of the following tax provisions:
 


Select Provision Described:

Under the tuition and fees deduction, qualified educational expenses may be deducted from income subject to tax for spouses, dependents or individuals, who are enrolled in an institution of higher education. This deduction may be up to $4,000. This deduction was extended through 2016 by the tax provision in the 2016 Omnibus bill.

Maximum benefit: Can reduce income subject to tax by up to $4,000

Limit on modified adjusted gross income (MAGI): $160,000 for married joint returns; $80,000 for single, head of household, or qualifying widow(er)

Qualifying tuition and fees that are deductible: Tuition and fees required for enrollment at an eligible institution of higher education but not including room and board

Calculating Max Deduction:

IF your filing status is single, head of household, or qualifying widow(er), then your maximum tuition and fees deduction corresponds to the follow MAGI:

  • Not more than $65,000: $4,000
  • More than $65,000 but no more than $80,000: $2,000
  • More than $130,000: $0

IF your filing status is Married filing joint return, then your maximum tuition and fees deduction corresponds to the follow MAGI:

  • Not more than $130,000: $4,000
  • More than $130,000 but no more than $160,000: $2,000
  • More than $160,000: $0

Information sourced from IRS Publication 970, “Tax Benefits for Education.”