There are some education tax breaks that
don’t require preplanning. Some are tax credits, which reduce
the actual tax you owe.
Hope Scholarship credit
You can claim a Hope Scholarship credit of
up to $1,800 for each dependent enrolled in the first two years
of post-secondary education. To qualify for the credit in 2008,
your modified
adjusted
gross income (AGI)
must be under $48,000 if you are a
single filer and under $96,000 if you are married and filing
jointly. And you must have paid at least as much as the credit
you claim.
Lifetime Learning credit
In 2008, you can claim a Lifetime Learning
credit of up to $2,000 per year for postsecondary education for
an unlimited number of years, provided you pay at least that much
in expenses. The income caps that apply are the same as for the
Hope Scholarship credit.
You can’t claim both the Hope Scholarship
credit and the Lifetime Learning credit for the same student in
the same year, but you can claim both if different students qualify.
And you can claim for yourself if you’re enrolled in a qualifying
educational program.
