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Hope Scholarship Credit
This tax credit is available to parents of dependent students or to students who are not claimed as dependents on their parents' return. The tax credit is equal to all of the first $1,000 of tuition and eligible fees (less scholarships, grants, and tax-free tuition benefits) and half of the next $1,000 of tuition and fees, for a maximum benefit of $1,500 each tax year.
Lifetime Learning Credit
This credit applies to tuition and fees for undergraduate, graduate, and continuing education course work. A family can claim on its tax return a credit equal to 20% of $5,000 of educational expenses, for a maximum benefit of $1,000 each tax year.
Who is eligible?
- Students in their first two years of undergraduate study are eligible for the Hope Scholarship. For the Lifetime Learning Credit, students are eligible in their third or fourth years of undergraduate study, or if they are enrolled in graduate school or in individual continuing education courses.
- Students must be enrolled at least half time.
- Married taxpayers filing jointly with AGI of $80,000 or less.
- Single taxpayers with AGI of $40,000 or less.
- Students must have no drug felonies.
If you have any additional questions about your eligibility for the new education tax credits, you can call the IRS at (800) 829-1040 or consult your tax advisor. Colleges and universities are unable to provide students and families with tax advice.
For more information about tax credits visit:
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