need help with Education Benefits credits/deduction

[Brilliant]

Taxpayer (lives in New York State) is eligible for either the American Opportunity credit or the Tuition and Fees Deduction, I know that I can't take both because of Double benefit restrictions, but can I take the American Opportunity Credit for Federal only, and the Tuition and Fees Deduction for NY State only?

it will be Greatly appreciated if I can also get references

[ddoshan]

Guess you would have to study NY rules. However, if NY starts out with the Federal AGI as many states do, then I would think it would be sort of tricky. But possibly a good idea to find out if you can.

[New York Enrolled Agent]

Taxpayer (lives in New York State) is eligible for either the American Opportunity credit or the Tuition and Fees Deduction, I know that I can't take both because of Double benefit restrictions, but can I take the American Opportunity Credit for Federal only, and the Tuition and Fees Deduction for NY State only?

As DD notes NYS uses federal AGI. If you used the AOC, you cannot change NYS income to use the T&F deduction.

However, NYS does have a college credit/tutition deduction that can be taken as a NYS item only. Look on the NY site for an IT-272 and the accompanying instructions. You have an option of a maximum $10,000 deduction or a maximum $400 tax credit. Which one to use - it depends. Run it both ways to see which gives the biggest result.