Nov
06
Posted by mir
College Tax Credits
We all know the economy stinks right now. Because of that, a lot of adults are finding themselves back at college again to get the degree they never finished or get an advanced degree to add to their resume. The government has seen this trend and has instituted some tax credits for college students. There are two main credits to look for.
The Hope Credit is tax credit for students attending their first two years of school. It can provide you with a tax credit of up to $1,800 on college tuition and fees. If you, your spouse or someone you claim as a dependent is a first or second year college student, is attending half time or more at a qualifying institution, and all college expenses were paid by you, you can claim the Hope Credit when you file your taxes.
The Hope Credit is available to those with higher incomes and it allows you to claim additional course materials as expenses for up to four post-secondary education years instead of the traditional two. The maximum credit of $2,500 per year per student is fairly easy to qualify for. You can claim a full credit if you have an adjusted gross income of $80,000 or less as a single, or $160,000 or less for married couples with a joint return.
The Lifetime Learning Credit is a tax credit for anybody taking college classes. You can get a tax credit of up to $2,000 on tuition and fees up to $10,000. If you, a dependent or your spouse attended a qualified institution, and you paid for all the expenses, you can apply for this credit. This tax credit does not require you to attend at least half time. As long as you took at least one credit, you may qualify.
So, if you attended college this past year and you feel like you meet the requirements, apply for the credit and you just might be surprised when you get back some unexpected money.
