The Internal Revenue Service offers tax relief for education in the form of two tax credits - the "Hope Credit" and the "Lifetime Learning Credit.
" Because these are credits, as apposed to deductions, it is possible that you might be able to subtract them from your federal income tax in full - dollar-for-dollar.
They are applicable to you or your dependents.
The Hope Credit provides tax relief for the first two years of post-secondary education for college or a vocational school.
Unfortunately, it does not apply from the third year through undergraduate and graduate programs.
It, also, does not apply for professional-level programs.
The Hope Credit could be worth as much as $1,650 per eligible student annually.
The Lifetime Learning Credit is applicable for tax relief purposes to undergraduate, graduate and professional degree programs; and, includes the acquisition of improvement in job skills.
If the student qualifies, the credit will be equal to 20% of the first $10,000 paid in fees or a maximum of $2,000 per tax return.
Both the Hope and the Lifetime Learning Credit may not be claimed in the same year for the same student and students must be free of any felony convictions for the possession of or distribution of a controlled substance at the close of the tax year.
Either credit may be claimed by the parents or student; but, not by both.
They are phased out for a Modified Adjusted Gross Income of over $47,000 for single person and $94,000 for married couple, filing jointly.
They are eliminated completely after a MAGI of $57,000 and over.