Mellisa says: There are two credit  designed to lighten the financial burden of higher education. They are the Hope Scholarship and the Lifetime Learning credits.

The Hope Scholarship credit is available to assist low-middle-income families and students pay for post-secondary education.

A tax credit can be claimed of up to $1,500 per year per student for each of the first two years of college. This amount consists of 100% of the first $1,000 of eligible expenses and 50% of the second $1,000 of eligible expenses.

The Lifetime Learning credit picks up where the Hope Scholarship credit leaves off. It is available for the remaining years of college, graduate school and classes attended to acquire or improve job skills.

 For expenses paid there is a $2,000 maximum credit amount each year per family. The credit is calculated as 20% of the first $10,000 of eligible expenses.
These credits cannot be claimed in the year a student receives a distribution from a Coverdell Education Savings Account.

Qualified expenses are limited to tuition and fees. Unfortunately, room and board, books and supplies are not considered qualified expenses and, therefore, are not covered.

Like the Lifetime Learning credit, the Hope Scholarship credit may be claimed by the student or the parents. However, the Lifetime Learning credit is available per family where the Hope Scholarship credit is available per student.

 It is a distinction that is easily overlooked and may be a big difference when it comes to the total amount of potential assistance.

 Both of these credits are nonrefundable to the taxpayer, that is, the taxpayer can only reduce their tax liability to zero. This restriction may actually keep some taxpayers from using the full amount of the credit, especially if the family is able to claim other types of credits.

The ability to claim the Hope Scholarship and Lifetime Learning credits are phased-out according to level of adjusted gross income (AGI).

The phase out range for a single tax filer is between $40,000 and $50,000, and a joint filer’s phase out range is between $80,000 and $100,000.

Taxpayers whose AGI exceeds these phase out ranges are not able to utilize these credits. Individuals claiming married filing separately status may not claim the credit(s).

  
On the other pages of this web site you will find Education Loans, Education Saving Plans and other Education information that has been collected from many independent sources.   Each article or news item offers a different point of view and resources and not necessay mine. 

This information is for general information only. 

• Brazil: More Emergency Aid for Soybeans (CattleNetwork.com)

• Income Tax Returns Your Accountant Should Not File

• Senate Democrats on Wednesday rejected a budget compromise, including a cut in the state income tax rate, offe

• Reminder -- Student Loan Interest Rates Set to Increase -- CONSOLIDATE NOW (Market Wire via Yahoo! Finance)

• Student loan forgiveness programs (Bankrate.com via Yahoo! Finance)

• income payment tax

• Student loan rates set for record increase, consolidate loans now (WAVY 10)

• Aid workers strive to protect children from Darfur war (AFP via Yahoo! News)

• estimated federal income payment tax

• Structured settlements may include income tax and spendthrift requirements as well as benefits. A structured settlement is a fin

• Tax Treatment For Coverdale IRAs
  
  A number of publications, including my own, have mistakenly reported over the past year that Coverdale IRAs, formerly known as Education IRAs, are tax deductible. Coverdale IRAs are not tax-deductible.Originally...

• Education Tax Credits For Higher Education
  
  Is higher education costing you a fortune? There may be a way to help pay for those costs with the help of education tax credits. What are education credits, who is eligible, and why should we take them?...

• What Happens If You Give More Than 12000 To Someone In 2006
  
  In an earlier article, we discussed the annual gift tax exclusion and how it works. In summary, we said that you could give up to $12,000 in cash or property to any one person during 2006 and not have...

• Education Credits
  
  What are education credits, who is eligible, and why should we take them? Well, lets start with the first part of the question, and work our way to the end. Education credits are tax credits available...

• Hope And Lifetime Learning Credits
  
  What are the Hope and Lifetime Learning education credits, who is eligible, and why should we take them? Well, lets start with the first part of the question, and work our way to the end. Education credits...

• Saving For A College Education
  
  Saving for a college education is one of the most difficult things for a student and their family. Luckily many businesses, organizations, and institutions offer helpful plans that assist in making this...

• Federal Student Loans Versus Private Student Loans - Which Is Best For Me
  
  Federal Student Loans versus Private Student Loans - which is best for me?You have gotten all the grants and scholarships you can, but you still need money for your education. Its time to look at loans....

• Private Student Loans - Dispelling The Myths
  
  Private Student Loans - dispelling the myths If savings, grants, scholarships, and federal loans dont cover the cost of your education, its time to turn to private loans. But young college students cant...

• I Cant Pay My Loan-Student Guidelines For Recovery
  
  You graduated and now your student loan is due. The job hasnt come through yet, or you are just in over your head. What can you do about that student loan?
  Before you enter the default stage, relax and...

• Student Loan Options For Financing Your Education
  
  When you begin applying for colleges, you will find that
  tuition and boarding fees are extremely expensive.
  Unless they are independently wealthy, few people can
  pay for college outright. If you do...

• Parent Loans Or Student Loans - What Is Going To Be Best For My Child
  
  Parent Loans or Student Loans - what is going to be best for my child?At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students...

• A College Loan Will Finance Your Education
  
  A college loan has given people all over the United States a chance to further their education, even if they are not making a lot of money. Education loans can be a big help in paying for college. Youll...

• Distance Learning - Education For The 21st Century
  
  Chances are you know someone who is working toward a college or post-college degree via the Internet. Perhaps you yourself have attended online classes to continue your education, obtain a certification,...

• The Secret To US Department Of Education Loans
  
  If you have heard about any kind of Federal financial aid for students, you are already familiar with US Department of Education loans. The US Department of Education handles all government aid for defraying...

• Why Employers Want An Employee With A Degree
  
  You wake up in the morning, head to work, and find out your company is downsizing and you are being laid off. No big deal you think, you have experience, youve worked at the same company for years. You...

• 10 Reasons To Go To College
  
  Life is full of options and choices. The choices we make shape our future. As we stand at the cross roads after high school we must have the right vision to make the decision to go to college.1. A college...

• Private Education Loans
  
  Private Education LoansSometimes, financial aid, scholarships, and federal grants and loans are just not enough to help you pay your way through college. Also, sometimes a federal loan is just not what...

• Be Happier And Healthier With A College Education
  
  Be Happier and Healthier With A College EducationIt has always been clear that a college graduate could make more money than a high school graduate but new research is showing that college degree holders...

• Federal PLUS Loans
  
  Federal PLUS LoansAs a student entering college, it is very unlikely that you have a few spare checks lying around that you can cash and magically use to pay for college. Most college-aged students, ranging...

• The Cost Of A College Education
  
  The costs of a college education continue to rise like a hot air balloon and many fear that they will soon be beyond their reach. Some experts have estimated that the cost of an average four year program...