WHO QUALIFIES FOR THE LIFETIME LEARNING CREDIT?
The Lifetime Learning credit is designed to help subsidize college expenses after the first two years. This credit, which is less restrictive than the Hope credit, is equal to 20 percent of qualified expenses. For 2003, $10,000 is the maximum amount of qualified tuition and expenses that can be used to calculate the Lifetime Learning credit; therefore, the maximum credit is $2,000 for 2003. The income phase-out rules are the same as for the Hope credit. The Lifetime Learning maximum is calculated per taxpayer and does not vary based on the number of students in a taxpayer’s family. Keep in mind that it doesn’t matter whether the student attends college full- or part-time or whether a course leads to a degree. The credit is available in any year the Hope credit is not claimed and is available for an unlimited number of years. WHAT IF TWO OR MORE CHILDREN ATTEND COLLEGE AT THE SAME TIME? A Hope credit of up to $1,500 can be claimed for each qualifying student. For example, if you have tw
