Using a College Tuition Credit Explained – Legal Magazine
The Hope credit can be used to receive a tax deduction on college tuition. Your adjusted gross income will determine the eligibility for credit under the Hope credit. This credit is a true tax credit and is not the same as a deduction. Tax credits are percentage of taxes due to a taxpayer. A maximum of Hope credit one can claim is $1,650 for every person who is eligible to be a dependent. There’s a limit of two years on credit for the Hope credit. Thus, taxpayers cannot use the credit after the two first years of the education of the qualified dependent.
Another type of tuition tax credit which a taxpayer can use is that of the Lifetime Learning credit. This credit is not restricted to a two-year limit. This credit is unlike that of the Hope credit. Taxpayers have the option of deducting 10 percent of the first $10,000 that they have spent on tuition. This is subject to a maximum allowable credit of $2,000. None of these credits is refundable. The credits can reduce the tax a taxpayer has to pay however they do not offer a refund. 5e5qjaxnuy.