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Offset Education Costs

Education tax credits can help offset the costs of higher education for yourself or a dependent. The Hope Credit and the Lifetime Learning Credit are two education credits available which may benefit you. You may be able to subtract them in full from your federal income tax, rather than just deducting from your taxable income, on the advice of your tax attorney.

The Hope Credit

The Lifetime Learning Credit

You cannot claim both the Hope and Lifetime Learning Credits for the same student in the same year.

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. Students who are claimed as a dependent cannot claim the credit.

These credits are phased out for Modified Adjusted Gross Income over $45,000 ($90,000 for married filing jointly) and eliminated completely for Modified AGI of $55,000 or more ($110,000 for married filing jointly). If the taxpayer is married, the credit may be claimed only on a joint return.

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