Is Education Tax Deductible?
Families with children already in college may qualify for tax deductions for educational expenses. The maximum Hope credit is available for the first two years of undergraduate school. It allows for $1500 of credit. The credit is based upon the first $1000 in qualified tuition and related expenses, and 50 percent of the next $1000 in expenses.
The maximum Lifetime Learning credit is $2000 for each household return. This credit is available for undergraduate and graduate students. It is calculated on 20 percent of the first $10,000 in qualified expenses.
The income phaseout for both credits is $83,000-$103,000 for married couples, filing jointly, and $41,000- $51,000 for everyone else.
However, if your income is too high to qualify for the Hope or Lifetime credits, don