Can I write off the difference between out-of-pocket costs of tuition and my reimbursement program?

Q: I take part-time graduate classes and have a tuition reimbursement program at work. However, the reimbursement is only $2500 per yet. Can I write off the difference between out-of-pocket costs of tuition and the reimbursement from my workplace? —Cindy, Newton

The following answer was provided by Barry Beck, CPA, Barry D Beck, CPA, PFS, DABFA.

A: You are able to take advantage of only the amount you paid, the amount in excess of your employer's contribution.

There are two alternatives that may be available to help you. One is an "above the line" deduction and the second is a life long learning credit.

The above the line deduction is found near the bottom of page one on the 1040. The life long learning credit use form 8863, I think. There are limitations on the use of both the deduction and credit.

Be sure to review the instructions for both items. You can also reference IRS Publication 970, available by downloading at IRS.gov.