Deducting tuition and fees

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You don’t need to itemize to get the Tuition and Fees deduction for your federal income tax return. In fact, you might benefit more by taking the Hope education tax credit or the Lifetime Learning credit, says Jay C. Sabey of Stellar Financial Solutions. These credits reduce your tax liability dollar-for-dollar—the deduction only decreases your tax liability as a percentage of your deduction amount. Starting this year, “computers and computer technology will be allowed as qualified purchases covered by 529 college savings plans in addition to tuition, room and board [and] mandatory fees and books,” says John Hewitt of Liberty Tax Service.