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Part of the tuition paid for college may provide a credit on your annual federal tax return. You can only claim one of the credits on your return and the requirements for each vary. However, both have set income guidelines regarding who will qualify for each.
1. Hope Scholarship Credit – This credit can only be claimed for two years for a student enrolled in college on at least a half-time basis. It provides a credit of up to $1,650 to cover the cost of tuition and fees.
2. Lifetime Learning Credit – A maximum of $2,000 (20 percent of tuition and fees) may be claimed for this credit for all family members attending college Tuition and fees can be claimed for any student regardless of the number of hours attending. In addition, students can take this deduction for multiple years.
|Jennifer Mathes, Ph.D.|