Lawmaker proposes state tax break for tuition

PROVIDENCE – A federal tax deduction for college tuition and fees would be extended to Rhode Islanders on their state income taxes under a bill filed by Rep. Edwin R. Pacheco, D-Burrillville.
Students are already able to deduct as much as $4,000 for tuition and fees on their federal income taxes, but those deductions are not available on Rhode Island state tax returns.
“At a time when more than 12 percent of our state’s work force is unemployed, it makes sense for us to be encouraging people to further their education and, in turn, increase their employability,” said Pacheco. “An educated work force attracts better-paying jobs, so this credit would benefit Rhode Islanders individually and our state’s economy as a whole.”
The bill – H 7082 – would create a state tax deduction that would be available to people paying for their own education or that of a spouse or dependent, as long as the tax filer’s adjusted gross income (AGI) is below $80,000, or $160,000 if filing a joint return.
Just like the federal credit, it would allow taxpayers to take credits of up to $4,000 a year if their AGI is below $65,000, or below $130,000 if filing jointly. Those with an AGI between $65,000 and $80,000, or between $130,000 and $160,000 for joint filers, would be allowed to deduct up to $2,000 a year. &#8226