What Kinds of Tuition Tax Credits Are There?
There are two tuition tax credit programs offered by the federal government to help you pay for college. They are the American Opportunity Credit, which replaces the Hope Credit, and the Lifetime Learning Tax Credit. To be eligible to claim the American Opportunity Credit, you must be enrolled in a postsecondary education program on at least a half-time basis. This credit can be claimed for the first four years of your postsecondary studies in 2009 and 2010 for tuition costs and certain education-related fees. A maximum of $2,500 in money for college can be claimed this year toward your credit. The requirements for the Lifetime Learning Credit are a bit less strict than for the American Opportunity Credit. With the Lifetime Learning Credit, a college student does not need to be enrolled part-time or more; any qualified course you take can make you eligible to receive this credit. You can claim up to $2,000 each year in money for college for this credit.
