What are Internal Revenue Service (IRS) tax credits?
The IRS offers two federal income tax credits (tax credits offer dollar-for-dollar reductions in your final tax liability) to certain taxpayers for higher education expenses. • The Hope Tax Credit, worth up to $1,650 per student, is available for first- and second-year students enrolled at least half-time.* • The Lifetime Learning Tax Credit is a tax benefit equal to 20 percent of a family’s tuition expenses, up to $10,000, for virtually any postsecondary education and training. This applies to undergraduate, graduate and professional degree students and even for less than half-time* study. For more information on the Hope and Lifetime Learning tax credits, and other tax benefits for postsecondary students, go to www.irs.gov. IRS Publication 970, Tax Benefits for Higher Education, which explains these credits and other tax benefits, is available online, or call 1-800-829-1040. TTY callers should call 1-800-829-4059.
