tax credits
American Opportunity Credit
For the tax year, you may be able to claim an American opportunity credit of up to $2,500 for qualified education expenses paid for each eligible student.
If you are eligible to claim the American opportunity credit and you are also eligible to claim the lifetime learning credit for the same student in the same year, you can choose to claim either credit, but not both.
The student must be enrolled at least 1/2 of the full-time workload in a program that leads to a degree, certificate or other educational credential.
Tuition and fees required for enrollment. Course-related books, supplies, and equipment do not need to be purchased from the institution in order to qualify. Student must be pursuing an undergraduate degree or other recognized education credential
Hope Tax Credit
Provides for a maximum $1800 per year per dependent student is available only for the first two years of post secondary education.
The student must be enrolled at least 1/2 of the full-time workload in a program that leads to a degree, certificate or other educational credential.
Credit can only be taken for expenses covering tuition, fees, and and books (if the book expense was paid to the institution on condition of enrollment) minus any scholarships and grants received.
Room and board, personal expenses and transportation are non-eligible expenses.
Lifetime Learning Tax Credit
Provides for a maximum $2000 per year per family; is available for any year of post secondary education including graduate work.
The student must be enrolled at an eligible educational institution.
Credit can only be taken for expenses covering tuition, fees, and and books (if the book expense was paid to the institution on condition of enrollment) minus any scholarships and grants received.
Room and board, personal
expenses and transportation are
non-eligible expenses.
more information from IRS web site
