HOPE TAX CREDIT and the LIFETIME LEARNING TAX CREDIT In August 1997 two tax credit provisions were signed into law that may significantly benefit your family. During a student’s first two years of college under the HOPE tax credit, a 100% credit for the first $1,000 of tuition and fees and a 50% credit for the next $1,000 is available

● F.A.Q.s      ● IRS Links

The tax credit is effective for qualified expenses paid after December 31, 1997, for taxable years ending after that date and for academic periods beginning after that date.

The student must be enrolled on at least a half-time basis. 

The Lifetime Learning tax credit is available to students beyond the second year of college and provides a 20% credit on up to $10,000 (i.e. maximum credit of $2,000 per year) in eligible expenses.

The credit is effective for qualified expenses paid after June 30, 1998 for taxable years after that date and for academic periods beginning after that date. 

This information is not intended as legal or tax advice.  Individuals should obtain IRS Publication 970, Tax Benefits for Higher Education.  Please check with your tax advisor for more details.