Tuition Tax Relief Act of 1981

Tuition Tax Relief Act of 1981 - Amends the Internal Revenue Code to allow a taxpayer an income tax credit or deduction for tuition paid to an elementary, secondary, vocational, or higher educational institution for the education of the taxpayer or the taxpayer's spouse or dependents.

Limits the amount of the credit to 50 percent of the amount of tuition paid up to a maximum of $500. Limits the amount of the deduction to $1,000 for the taxable year.