Hi Atlanta Tax Expert,
Thanks, again.
I will claim my wife's deduction as per your suggestion and will keep her fee receipts, just in case the IRS decides to inquire about. One more question -
My wife is an MBA student working towards her credits. We paid around $10000 in 2007. What would be the best for me to do? On 1010-A, claim "tuition and fees deduction (line 19)" whereby I can deduct the fees directly from my income; or claim "Education credits (line 31)?" You said "even hope credits.." and I don't know what's the best for me to do - to minimize my tax burden? Line 19, 31, hope credits? Please suggest and thanks as always.