Two tax credits to help ease your financial burden

The HOPE Scholarship Tax Credit is intended to make the first two years of college more universally available. Don't be confused by the name — this is a tax credit, not a scholarship. If the student is a dependent, you as a parent can claim the credit. If you or your spouse are the student, then you can claim the credit yourself. Your credit amount is based on your AGI (Adjusted Gross Income). A family may claim up to $1,500 per tax year for each eligible dependant.

HOPE Scholarship Tax Credit Eligibility Based on AGI
Tax Status	AGI	Credit
Single	Up to $43,000	Full credit
Single	$43,000 — $53,000	Phased out gradually
Married filing jointly	Up to $87,000	Full credit
Married filing jointly	$87,000 — $107,000	Phased out gradually

Terms and conditions:

• The HOPE Scholarship Tax Credit is only available for the first two years of college.
• The credit is available for the cost of tuition and fees, minus any grants, scholarships, and other tax-free educational assistance.
• This benefit cannot be used in the same tax year as the Lifetime Learning Tax Credit or a tax-advantaged education savings account.

The Lifetime Learning Tax Credit is intended to provide tax benefits for college juniors and seniors, graduate students, and others pursuing lifelong learning to upgrade their skills. Your tax credit is based on your qualified tuition and related expenses as well as your AGI (Adjusted Gross Income). Up to $2,000 can be deducted per tax year.

Lifetime Learning Tax Credit Eligibility Based on AGI
Tax Status	AGI	Credit
Single	Up to $43,000	Full credit
Single	$43,000 – $53,000	Phased out gradually
Married filing jointly	Up to $87,000	Full credit
Married filing jointly	$87,000 – $107,000	Phased out gradually

Terms and conditions:

• This benefit cannot be used in the same tax year as the HOPE Scholarship Tax Credit or a tax-advantaged education savings account.
• You can claim a credit for up to 20% of your family's first $10,000 of qualified educational expenses paid for all eligible students. The maximum amount of a Lifetime Learning Tax Credit is $2,000 and does not vary based on the number of students in the family.