Whats the education tax credit?
There are two types of education credit, Hope Credit and Lifetime-Learning Credit, and you must choose. Briefly: the Hope credit is for the first 2 years after high school, so it fits community college or the first 2 years of a 4 year college. It must be for at least half-time study. The annual credit ceiling is $1,800 per student in 2008 (100% of the first $1,200, 50% of the next $1,200). The lifetime learning credit fits any undergraduate or graduate study, but study less than half- time must be work-related. The credit ceiling is $2,000 (20% of expenses up to $10,000) per taxpayer per year.
There are two types of education credit, Hope Credit and Lifetime-Learning Credit, and you must choose. Briefly: the Hope credit is for the first 2 years after high school, so it fits community college or the first 2 years of a 4 year college. It must be for at least half-time study. The annual credit ceiling is $1,800 per student in 2008 (100% of the first $1,200, 50% of the next $1,200). The lifetime learning credit fits any undergraduate or graduate study, but study less than half-time must be work-related. The credit ceiling is $2,000 (20% of expenses up to $10,000) per taxpayer per year.
There are two types of education credit, and you must choose. Briefly: the Hope credit is for the first 2 years after high school, so it fits community college or the first 2 years of a 4 year college. It must be for at least half-time study. The credit ceiling is $1,500 per student per year (100% of the first $1,000, 50% of the next $1,000). The lifetime learning credit fits any undergraduate or graduate study, but study less than half- time must be work-related. The credit ceiling is $2,000 (20% of expenses up to $10,000) per taxpayer per year.
There are two types of education credit, Hope Credit and Lifetime-Learning Credit, and you must choose. Briefly: the Hope credit is for the first 2 years after high school, so it fits community college or the first 2 years of a 4 year college. It must be for at least half-time study. The annual credit ceiling is $1,800 per student in 2009 and 2008 (100% of the first $1,200, 50% of the next $1,200). The lifetime learning credit fits any undergraduate or graduate study, but study less than half- time must be work-related. The credit ceiling is $2,000 (20% of expenses up to $10,000) per taxpayer per year. Note: For students in Midwestern Disaster Areas, the 2008 Hope credit is 100% of the first $2,400 of qualified education expenses and 50% of the next $2,400 of qualified education expenses for a maximum credit of $3,600 per student. The definition of qualified education is expanded for students in Midwestern disaster areas. See IRS Publication Students in Midwestern Disaster Areas.
A. There are two types of education credit, and you must choose. Briefly: the Hope credit is for the first 2 years after high school, so it fits community college or the first 2 years of a 4 year college. It must be for at least half-time study. The credit ceiling is $1,500 per student per year (100% of the first $1,000, 50% of the next $1,000). The lifetime learning credit fits any undergraduate or graduate study, but study less than half- time must be work-related. The credit ceiling is $2,000 (20% of expenses up to $10,000) per taxpayer per year.
Related Questions
- Are qualified tuition and related expenses for graduate-level education eligible for the Hope Scholarship Tax Credit, the Lifetime Learning Tax Credit or the American Opportunity Credit?
- Applied Degree and Co-op Students – Why didn’t I receive an education tax credit for my work term?
- Who is eligible for the Education Tax Credit?
