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  Answer this Question    Ask about Taxes    Ask about another Subject  
 

dashman81
Dec 28, 2007, 06:12 AM
A single male who made 46,000, lives in New York, pays 1,150 a month in rent and has about 300 dollars in deductions from interest on a student loan and graduate school tuition?

MukatA
Dec 28, 2007, 08:08 PM
You can reduce your taxable income by up to $4,000 by deducting your School Tuition fees. It is shown as adjustment to income on Form 1040, line 34 or 1040A, line 19.
Assuming that you will take this adjustment, then on wages of $46,000 the taxes are:
Social security withheld $2852
Medicare withheld $667
Your Federal Income tax $4,736
Then you will have NY Income Tax and other taxes (if any).

AtlantaTaxExpert
Dec 29, 2007, 08:29 AM
He may benefit from the Lifetime Learning Credit rather than the tuitiopn deduction, but I have NOT run the calculations.

MukatA
Dec 29, 2007, 09:14 PM
Yes, dashman81 will save $600 on tax by claiming tuition deduction. So it may be better not to claim tuition deduction and go for Education credit.

AtlantaTaxExpert
Dec 29, 2007, 11:18 PM
Looking at the original posting, it is NOT clear how much was spent on tuition.

But it's a good bet it's MORE than $4,000.

MukatA
Dec 29, 2007, 11:32 PM
Maximum tuition fee adjustment allowed is $4,000.

AtlantaTaxExpert
Dec 30, 2007, 12:31 AM
That is true, but I believe the $300 citation is for interest paid.

BEBZ
Jan 17, 2009, 12:24 PM
how much will a single female with 2 children who made about
9000 dollars in seven months lives in waterbury connecticut pays 325 for rent a month

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