|
|
If you claim a deduction for higher education expenses on your tax return, you cannot claim a credit for those same expenses. Similarly, if you pay higher education expenses with tax-free scholarship, Pell grant, or employer-provided educational assistance, you cannot claim a credit for those amounts. You can, however, claim a credit for expenses paid with the student’s earnings, loans, gifts, inheritances, and personal savings. If, in a later tax year, you receive a refund of an amount you used to figure a higher education credit, you may have to repay all or part of the credit.
For each eligible student, you can elect for any tax year only one of the credits or a tax-free withdrawal from an education IRA. For example, if you elect to take the Hope credit for a child on your 1998 tax return, you cannot, for that same child, also claim the lifetime learning credit for 1998 or take a tax-free withdrawal from an education IRA for 1998. In any one tax year, only one person can claim a higher education credit for an eligible student’s expenses. If you are paying higher education costs for your dependent child, either you or your dependent child, but not both, can claim a credit for a particular year. If you claim an exemption for your child on your tax return, only you can claim a credit. If you do not claim an exemption for your child on your tax return, only your child can claim a credit.
Your education credits are phased out (gradually reduced) if your modified adjusted gross income is between $40,000 and $50,000 ($80,000 and $100,000 in the case of a joint return). You cannot claim any higher education credits if your modified adjusted gross income is over $50,000 ($100,000 in the case of a joint return). For most taxpayers, modified adjusted gross income will be either adjusted gross income (AGI) as figured on their federal income tax return.
BACK to Taxpayer Relief Act Info
CONTINUE to the Hope Credit
CONTINUE to the Lifetime Learning Credit |
 |
|
| Staff Contact Info |
| Important Announcements |
| Payment Due Dates |
| Georgetown Payment Plans |
| Financial Readiness Checklist |
|
| Payment |
| Refunds |
| Information |
| OSA Site Map |
| OSA Home |
