You may be able to deduct qualified tuition and related expenses paid during the year for yourself, your spouse or a dependent. Qualified expenses are those that must be paid to the institution as a condition of enrollment or attendance. These can include tuition for classes; expenses for course-related books, supplies and equipment; and student-activity fees.

You cannot claim this deduction if your filing status is married filing separately or if another person is entitled to claim an exemption for you as a dependent on his or her tax return. The tuition and expenses must be for higher education. This deduction can reduce the amount of your taxable income by up to $4,000. This deduction is taken as an adjustment to income even if you do not itemize deductions, and may be beneficial to taxpayers who cannot take either of the education credits (the Hope Credit and the Lifetime Learning Credit) because their income is too high.

Learn more about the other types of tax benefits available:

• Reduce taxes with the Hope Credit
• Reduce taxes with the Lifetime Learning Credit
• Deduct student loan interest
• Receive tax-free treatment of canceled student loans
• Make early withdrawals from any type of individual retirement arrangement (IRA) for education costs without paying the 10% additional tax
• Cash in savings bonds for education costs without paying tax on the interest
• Receive tax-free educational benefits from your employer

A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself.

The information contained in this section is from IRS Publication 970: Tax Credits for Education. PNC does not provide tax advice and makes no representation or warranty as to the accuracy of the information. Please consult your tax advisor for tax advice matters contained in this section.

For more information, visit www.irs.gov or call 800-829-1040.