Comments on: Education Tax Credits: Hope & Lifetime Learning Credits

By: Josh

Josh — Thu, 11 Feb 2010 09:30:59 +0000

I’m paying my own way, and ony have about $400 listed under my federal tax paid through my company. I’,m a sophomore this year. Will I get back most of my tuition($2900 paid in 2009) or will I just get back the $400? Any advise is appreciated.

By: Anonymous

Anonymous — Fri, 29 Jan 2010 21:08:55 +0000

Post-secondary education is any college, university, etc. Your school should supply you with a 1098-T if you paid any tuition.

By: Pip

Pip — Fri, 29 Jan 2010 05:12:17 +0000

I have been going to college on and off for 5 years. I finally received my Associate Degree in 2009. Do I qualify for Hopes Credit or Lifetime learning credit. I just don’t understand the part when it says post secondary education. Does getting an associate degree apply to that?

By: Billy

Billy — Tue, 21 Jul 2009 14:12:00 +0000

The credit is almost always worth more than a deduction. There is a Tuition & Fees deduction that adjusts your gross income dollar-for-dollar. What this means is that if you are taxed at 25%, you get 25% of that deduction as a reduction in your tax.
However, in regard to the above post, the most you can claim on the Tuition & Fees deduction is $4,000. In other words, a $1,000 tax saving at 25% bracket. Either credit would be worth more than that.
The deduction is really only beneficial if your income puts you in the phase-out limits and you can’t claim the credit.

By: Kim

Kim — Mon, 06 Apr 2009 17:27:14 +0000

What exactly do you mean by deduction isn’t worth more? What tax credit would be more helpful to a student that isn’t independent from parents? Which is better for a student that is independent?

By: Pat

Pat — Thu, 19 Mar 2009 17:08:54 +0000

i think my parents took some of the Lifetime learning credit…but they aren’t sure. I am independent of them now and could use some or all. How do i find out what the gov’t has on record, since my parents did not keep good records.

By: Scott

Scott — Wed, 21 Jan 2009 16:54:16 +0000

Anyone interested in these should definitely double check that a deduction is not worth more. Based on your tax bracket, a deduction can often be worth much more. For example, deducting $9,000 in tuition when in the 25% tax bracket might net you roughly $2,250 in tax savings (more than either credit can give you).

Not a tax professional, just my experience.