A full year resident taxpayer paid $13,000 in tuition payments for tax year 2012; the taxpayer should first fill out the Massachusetts AGI Worksheet and then the College Tuition Deduction Worksheet. For this example, Line 7 of the AGI Worksheet is $45,000. 

2013 Schedule Y, Line 11 Worksheet - College Tuition Deduction
A deduction is allowed for tuition payments paid by you, for yourself or a dependent, to a qualifying two- or four-year college leading to an undergraduate or associate's degree, diploma or certificate. Tuition payments for students pursuing graduate degrees at such a college or university are not eligible for the college tuition deduction. The deduction is equal to the amount by which the tuition payments, less any scholarships, grants or financial aid received, exceed 25% of Massachusetts AGI.

The amount of the college tuition deduction is limited to qualified tuition expenses paid during a taxable year in connection with an academic term beginning during such taxable year or during the first three months of the next taxable year.

Qualified tuition expenses include only those expenses designated as tuition or mandatory fees required for the enrollment or attendance of the taxpayer or any dependent of the taxpayer at an eligible educational institution. No deduction is allowed for any amount paid for room and board, books, supplies, equipment, personal living expenses, meals, lodging, travel or research, athletic fees, insurance expenses or other expenses unrelated to an individual's academic course of instruction. Complete the Massachusetts AGI Worksheet and the Schedule Y, line 11 worksheet to see if you may qualify for this deduction. See TIR 97-13 for more information.

1. Enter total tuition payments paid by you, for yourself or a dependent, to a qualifying two or four-year college in 2013

$13,000

2. Enter amount of scholarships, grants or financial aid received in 2013 for amounts shown in line 1

$0

3. Enter amount of reimbursements or refunds received in 2013 of amounts shown in line 1 reported by an insurer (from US Form 8383, box 10)$0
4. Subtract lines 2 and 3 from line 1. If "0" or less, you do not qualify for this deduction

$13,000

5. Residents, enter amount from line 7 of the Massachusetts AGI Worksheet; part-year residents and nonresidents, enter amount from line 10 of Schedule NTS-L-NR/PY, No Tax Status and Limited Income Credit

$45,000

6. Multiply line 4 by .25

$11,250

7. Residents, if line 4 is smaller than line 6, you are not eligible for this deduction. Enter "0." If line 4 is larger than line 6, subtract line 6 from line 4 and enter the result here and on Schedule Y, line 11.

$1,750


7. Part-year residents, multiply line 6 by Form 1-NR/PY, line 2. Enter the result here and in line 11 on Schedule Y. Nonresidents, multiply line 6 by Form 1-NR/PY, line 14g. Enter the result here and in line 11 on Schedule Y.

For more information regarding the College Tuition Deduction


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