Tax Relief and Tax Credit

The Hope Scholarship Tax Credit has been expanded for 2009 and 2010. Read more.

The Tax Payer Relief Act of 1997 provided two tax credits for
students and parents of dependent students:

The Hope Scholarship and Lifetime Learning tax credits.
The Hope Scholarship, which is for parents of dependent
undergraduate students, provides a 100% credit for up to $1,200 of eligible fees and tuition, and 50% for the next $1,200, with a maximum credit of $1,800.
The Lifetime Learning Tax Credit, which is for independent
undergraduate and graduate students, provides a tax credit for up to $2,000 of eligible fees and tuition.
Both of these tax credits provide a great benefit for taxpayers who are eligible to receive them because they are subtracted directly from the tax due, not from income, so they can increase the tax refund for eligible students.
For more information on these two Education Tax Credits, which includes eligibility for the credits (income ceilings, citizenship, attendance, and types of fees allowed), please see the summary on the Billing and Payment Services web site.