Education Tax Credits

The Hope Scholarship Credit
The Hope Scholarship Credit was created in 1997 to make college more affordable and to encourage lifelong learning. The Hope provides a credit equal to 100% of the first $1,000 plus 50% of the next $1,000 of net tuition and fees paid during 2006, for a maximum credit of $1,500. The Hope is only available during the first two years of post-secondary education, and you must be enrolled at least half-time to qualify.

The Lifetime Learning Credit (LLC)
The LLC can be taken by students who are enrolled in undergraduate, graduate or professional degree classes, whether part time or full time. Students can claim 20% of the first $10,000 of post-secondary tuition and fees paid, for a maximum credit of $2,000 per tax return. The same student may not claim the Hope Credit and the LLC in the same tax year.

Additional Resources
Information on this page is from a free fact book by the Center on Budget and Policy Priorities. Download a free copy of this fact book (pdf) for additional information on tax credits and details about how to use them to get even more money back.

A copy of tax forms can be obtained from the IRS by calling 1-800-TAX-FORM or from www.irs.gov. Most tax forms are available at public libraries and main post offices. Hearing impaired people can call 1-800-829-4059.

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