- Days left
Education credits are available to those who are enrolled in post-secondary education leading to degrees. You can claim either the Hope Credit or the Lifetime Learning Credit, but both cannot be claimed in the same year. You can claim the credit for yourself, your spouse, and your dependents. If you claim your child as a dependent, that child cannot claim the credit for himself or herself.

The Hope Credit can be claimed for the first two years only of college or vocational school for a student that is enrolled at leas half-time for at least one academic period during the year. The maximum credit is $1,650 per student, including 100% of the first $1,100 of qualified tuition and related fees paid during the tax year, plus 50% of the next $1,100.

The Lifetime Learning Credit can be claimed for any year of study in any undergraduate, graduate, or professional degree course. The credit is equal to 20% of the first $10,000 of tuition and fees, up to a maximum of $2,000 per tax return.

If the student has any federal or state felony convictions for possessing or distributing drugs, neither credit can be claimed. The credits are also phased out for higher levels of income. More information can be found in Publication 970, Tax Benefits for Education.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Increase your money and finance knowledge from home

Understanding Credit Scores

Credit scores matter -- learn how to improve your score.

View Course »

How Financial Planners go Grocery Shopping

Learn to shop smart and save.

View Course »

TurboTax Articles

What is IRS Form 8917?

If you, your spouse or dependents attended post-secondary school, you may be able to deduct a portion of the tuition and fees by reporting it on IRS Form 8717.

Video: How to Find Your Tax Bracket

Finding the tax bracket you fall into will help you know how much money you have to pay in taxes each year. Find your tax bracket with help from TurboTax in this video clip.

What Is the IRS Form 4562?

If you've purchased property to use in your business, you can deduct a portion of your costs by claiming a depreciation deduction and reporting it on IRS Form 4562.

Add a Comment

*0 / 3000 Character Maximum