<p>Hello, I was wondering is tuition tax exempt for any university or is there a cap/ceiling for the maximum amount of tuition that can count to be tax exempt?</p>
<p>There is no tax “exemption” for college tuition. There are some tuition tax credits and the type depends on your income level. There is also a maximum credit…and believe me…it doesn’t come CLOSE to what you are paying each year.</p>
<p>There are various education tax benefits. For instance the American Opportunity tax credit is a tax credit of up to $2400. The lifetime learning credit is a credit of up to $2000 a year. There are also tuition and fees deductions of up to $4000. The benefits have various income eligibility limits. And you can generally only take one of them in a tax year.</p>
<p>Tuition is usually tax exempt for most colleges and universities that receive tuition payments, as they are typically tax exempt institutions. As others have noted, tuition is not generally tax deductible for individual taxpayers or their families.</p>
<p>Here is info on the new Tax credits</p>
<p>[The</a> New, Improved College Tax Credit - Forbes.com](<a href=“http://www.forbes.com/2009/03/10/college-tax-credit-stimulus-personal-finance-retirement-new-credit.html]The”>The New, Improved College Tax Credit)</p>
<p>Tuition that you pay is not tax-deductible for you, beyond the credits described above.</p>
<p>If you get grant or scholarship that pays tuition, generally that IS exempt from income tax. without any cap. But if you get a grant or scholarship that pays for things like room & board, books, activity fees, that portion IS NOT exempt from tax and must be counted as part of your taxable income.</p>