| Who is qualified for education credits? |
To qualify for either credit, you must pay post-secondary tuition and fees for yourself, your spouse, or your dependent. The credit may be claimed by the parent or the student, but not by both. However, if the student was claimed as a dependent, the student cannot claim the credit.
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| What are considered qualified expenses for education credits? |
Qualified expenses are tuition and fees required for enrollment or attendance at an eligible educational institution.
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| Who may claim the education credit? |
If you pay for qualifying higher education costs for you, your spouse or someone you claim as your dependent, you may be eligible for the education credit. In some circumstances, it may be more beneficial to recognize the eligible expenses as adjustments to income rather than taking a credit.
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| Why am I not getting the full credit for my education expenses? |
You may qualify for the credit; however, the HOPE and Lifetime Learning credits can only be used to reduce taxes. If you have no tax liability on your return, you cannot take the credit. Any unused credit will not be refunded.
You may also be subject to a phase out based on your modified adjusted gross income. If your filing status is single, the credit is phased out if your modified adjusted gross income is between $41,000 & $51,000. If you are filing a joint return, the range is $83,000 to $103,000. If you are filing as married filing separately, you are not eligible for the credit.
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| What is the difference between the Hope Credit and the Lifetime Learning Credit? |
The Hope Credit can only be taken for an eligible student who is enrolled in the freshman or sophomore years of college in a program leading to a degree. Further, the student must be taking at least one-half the normal full-time work load. Conviction of a drug-related felony disqualifies the student.
The Lifetime Learning Credit is useful for students who can't qualify for the Hope Credit. The Lifetime Learning Credit provides a smaller tax benefit for an unlimited number of years in which the student takes one or more post-secondary educational courses. These courses can apply towards an undergraduate, graduate, or professional degree, certificate program, or other academic credential.
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