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This was a three-part question: 1) How do I avoid the 10% penalty? (you answered that); 2) how do I prevent my IRA withdrawal from being taxable income?; 3) How I deduct the $20,000+ I paid in tuition?
Please answer the rest of the questions. Thanks!
Another expert here -
How do I prevent my IRA withdrawal from being taxable income? The answer is you cannot prevent it. You can only avoid paying the 10% penalty as detailed by the previous expert.
How I deduct the $20,000+ I paid in tuition? The maximum education credit is $2,500 per student for the American Opportunity Credit, and up to $2,000 per return for the Lifetime Learning Credit. You cannot use both credits for the same student. OR
You may, however, be able to reduce your income by taking the tuition and fees deduction which can reduce your taxable income by up to $4,000. You cannot take this deduction if your modified adjusted gross income is more than $80,000 if you are filing single or more than $160,000 if you are filing a joint return.
I'm sorry if this is not the answer you were looking for, but it is my responsibility to give you accurate information.
Thank you and best regards.