Higher Education Tax Credits
The Lifetime Learning and Hope Scholarship tax credits are a part of the Taxpayer Relief Act of 1997, which allows eligible taxpayers to claim a tax credit against their federal income tax for qualified educational expenses.
The Hope Scholarship Tax Credit provides for a credit of up to $1,500 for each eligible student’s qualified educational expenses paid in a given tax year. This credit may be claimed for only the first two years of postsecondary education.
The Lifetime Learning Tax Credit is for students not eligible for the Hope Credit. This credit provides for a tax credit of up to $2,000 per return. This credit may be claimed for as many years as qualified education expenses are paid.
For more information, please visit these websites:
IRS Publication 970: www.irs.gov/pub/irs-pdf/p970.pdf