Educational Tax Information
In 1997, the Taxpayer Relief Act established two education tax credits. The following is for general information only and should not be taken as tax advice. Please consult the IRS or a tax professional for more information.
The Hope tax credit is available for the first two years of postsecondary education for students enrolled at least half time in a degree-seeking or certificate granting program. Taxpayers may claim up to $1,500 per student for qualified tuition and related expenses paid in a calendar year.
The Lifetime Learning tax credit applies to any postsecondary education to acquire or improve job skills. There is no minimum enrollment requirement or limit to the number of years it is available. Taxpayers may claim a maximum of $2,000 (20% of $10,000) of qualified expenses paid in a calendar year. There are some income limitations for this credit, please see IRS Publication 970 for more information.
The Higher Education Tuition and Fees Deduction is for students who do not meet the income cap requirements for the Hope or Lifetime Learning credits. Students may qualify for a $2,000 deduction if their income for a single person is between $65,000 and $80,000 or for a family is between $130,000 and $160,000. Please see IRS Publication 970 for more information.
IRS Form 1098-T will be issued to all qualified students with tuition and fee expenses paid each calendar year. The form will be mailed to the student's permanent address on file as of January 31 following each calendar year end.
