Skip to content Menu

In the final hours of the 109th Congress, the House and Senate passed a broad tax and trade bill that includes extension of the above-the-line tuition deduction and the research and development tax credit.  Both provisions expired at the end of 2005. The Tax Relief and Health Care Act of 2006 (H.R. 6111), also includes health savings account changes, extension of the state and local tax deduction, a number of energy tax extensions, and several trade provisions. President Bush signed the bill into law on December 20, 2006.

The above-the-line tuition deduction enables taxpayers earning $65,000 or less a year ($130,000 for married couples filing jointly) to deduct up to $4,000 annually in tuition and related expenses. For those with adjusted gross income of $80,000 ($160,000 for married couples), the deduction is limited to $2,000 annually.  H.R. 6111 extends the tuition deduction for tax years 2006 and 2007.


Related Content

NACUBO On Your Side: May 16–22, 2023

The Department of Education has proposed strict new rules on gainful employment and financial responsibility, and more.

3 Steps for Business Officers as National Debt Ceiling Deadline Looms

As Washington lawmakers continue to seek agreement on raising the nation’s debt ceiling, college and university business officers should review treasury policies and practices.

NACUBO On Your Side: May 22–June 5, 2023

ED plans to issue final Title IX rules in October and reminds schools about Perkins Loans Requirements and more.