So... my daughter was in her 1st year of college last year. In 2005 I took a tuition deduction (payed 21,726 on form 1098-T). This was for the 2005-2006 freshman year. Now I get the 2006 1098-T from her school showing no tuition payed for 2006. That is essentially correct, but are there any breaks here? I know only a fraction of the tuition payed in 2005 was actually used as a deduction for my 2005 return.

My question is can I carry-over the excessive tuition I payed in 2005 to 2006?

Thanks!

Unfortunately, I know of no exceptions to this rule, where you can carry over unused Education deduction from 2005 over to 2006. The rules are very clear, and usually, the amount of deduction is limited by the code sections and various limits apply based on your Adjusted Gross Income. This I believe, resulted in you being able to claim limited writeoff or deduction for education tuition expense paid in 2005.

Most taxpayers in fact cannot deduct dollar for dollar paid on their children's tuition fees and offset these against their regular taxable income due to the fact that the IRS has placed limits against claiming deductions for education and tuition expenses for colleges and higher education.

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