What are the Hope Credit and the Lifetime Learning Credit and what are allowable tuition and fee tax deductions for each?
For an overview of the Hope Credit, Lifetime Learning Credit, and allowable tuition and fee tax deductions visit http://www.irs.gov/taxtopics/tc605.html. Not all students who pay qualified expenses are eligible for a tax credit. For example, both credits have an income cap. Students who have a Modified Adjusted Gross Income (MAGI) greater than or equal to $57,000, or $ 114,000 for those filing a joint return, are not eligible for the Hope or Lifetime Learning credit. Chapter 35 of IRS Publication 17 provides a very clear explanation of the eligibility requirements and filing instructions for the Hope Credit and the Lifetime Learning Credit. You can access an electronic copy of this chapter at http://www.irs.gov/publications/p17/ch35.html. The information provided may help you determine if you may be eligible for a tax credit. If you are eligible for both, it will help you decide which to claim. Each student can only claim one of these tax credits per year. You are also prohibited from
