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(Text supplied by IRS.gov, Department of the Treasury)
There are two education tax credits available for the current tax
year, the Hope Credit and the Lifetime Learning Credit. The credits
are based on education expenses paid for you, your spouse, or your
dependents. During any particular year, you can claim only one of the
credits for each student.
The amount of the credit is determined by the amount you pay for
"qualified tuition and related expenses" for each student and the
amount of your modified adjusted gross income (modified AGI).
Expenses that qualify are tuition and fees required for enrollment or
attendance at an accredited college, university, vocational school, or
other post–secondary educational institution that is eligible to
participate in a student aid program administered by the Department of
Education.
Qualified expenses do not include room and board, insurance,
transportation, or other similar personal, living, or family expenses.
Qualified expenses may include fees for books, supplies, and equipment
only if the fees must be paid to the school for the student's
enrollment or attendance. In addition, qualified expenses may include
student activity fees if the fee must be paid to the school for the
student's enrollment or attendance.
You can claim a Hope Credit only for an "eligible student." An
"eligible student" is a student who:
- The student did not have expenses that were used to figure a
Hope credit in any two earlier tax years
- As of the beginning of the year, has not completed the first two
years of post–secondary education (that is, generally is a freshman
or sophomore in college).
- Is enrolled in a program that leads to a degree, certificate, or
other recognized educational credential, for at least one academic
period beginning during the year.
- Is taking at least one–half of the normal full–time workload for
the student's course of study for at least one academic period
beginning during the calendar year, and
- Is free of any federal or state felony conviction for possessing
or distributing a controlled substance as of the end of the year.
You can claim a Hope Credit for only two tax years for each
eligible student. An eligible student can be you, your spouse, or your
dependent for which you claim an exemption.
The Lifetime Learning Credit is not based on the student's workload.
It is allowed for one or more courses that the student takes at an
eligible educational institution. The credit is not limited to
students in the first two years of post–secondary education. Expenses
for graduate–level degree work are eligible. However, to be eligible
for the credit, the student must be taking course work in order to
acquire or improve job skills. There is no limit on the number of tax
years for which the Lifetime Learning credit can be claimed for each
student. The amount you can claim as a credit does not vary (i.e.,
increase) based on the number of students for whom you pay qualified
expenses. However, that amount may be reduced based on your modified
AGI.
*The Hope Credit is not allowed for a student convicted
of a felony drug offense.
*Emory University is unable to provide Tax Advice. Please consult your
tax advisor.
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