What tax credits/deductions for college tuition will be available next tax year?
Dear OK: Good question and the answer is form 8863. See IRS instructions for this form and the Hope/Lifetime credit. You may also qualify for the tuition and fees deduction, but the Hope/Lifetime are generally better. See IRS Pub 970. The Hope credit for 08 is $1800 ($3600 in the Midwestern disaster area) and the Lifetime is $2000 ($4000 in the Midwestern disaster area). With the new stimulus each credit gets a slight bump next year. Your school will send you a form 1098-T with your qualified expenses paid listed on this form. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more.
