Education Tax Credits & Deductions

There are a number of tax credits and deductions that students or parents of students can take, such as the Tuition and Fees deduction and the Hope and Lifetime Learning credits. These deductions were created as part of the Taxpayer Relief Act of 1997, to help parents and students offset the costs of higher education.
  1. Tuition and Fees Deductions

    • Qualifying students may be eligible to take up to $4,000 in deductions for tuition, fees and certain educational expenses that are required by the educational institution.

    The Hope Credit

    • Students who are enrolled at least half-time and are in their first 2 years of school at an accredited college may be eligible to take a credit of up to $1,800 via the Hope Credit.

    The Lifetime Learning Credit

    • Any student attending any year at any school (this includes courses to improve job skills) may take a tax credit of up to $2,000 via the Lifetime Learning Credit.

    Restrictions

    • Typically, the same student cannot take both a credit and a deduction. However, a parent who has more than one dependent student can take a credit or a deduction for each student. A student cannot claim either the deduction or the credit if they can be claimed as a dependent. In that case, their parents would claim the deduction or credit.

    Income Limits

    • You are ineligible for either credit if your modified adjusted gross income (MAGI) is more than $58,000 ($116,000 if married).

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