Comments on: Education Tax Credits: Hope & Lifetime Learning Credits http://www.bargaineering.com/articles/education-tax-credits-hope-lifetime-learning-credits.html personal finance blog with anecdotes, advice and commentary. Sat, 21 Nov 2009 22:47:06 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Billy http://www.bargaineering.com/articles/education-tax-credits-hope-lifetime-learning-credits.html/comment-page-1#comment-315915 Billy Tue, 21 Jul 2009 14:12:00 +0000 http://www.bargaineering.com/articles/?p=4088#comment-315915 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. 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 http://www.bargaineering.com/articles/education-tax-credits-hope-lifetime-learning-credits.html/comment-page-1#comment-301414 Kim Mon, 06 Apr 2009 17:27:14 +0000 http://www.bargaineering.com/articles/?p=4088#comment-301414 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? 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 http://www.bargaineering.com/articles/education-tax-credits-hope-lifetime-learning-credits.html/comment-page-1#comment-300295 Pat Thu, 19 Mar 2009 17:08:54 +0000 http://www.bargaineering.com/articles/?p=4088#comment-300295 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. 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 http://www.bargaineering.com/articles/education-tax-credits-hope-lifetime-learning-credits.html/comment-page-1#comment-295330 Scott Wed, 21 Jan 2009 16:54:16 +0000 http://www.bargaineering.com/articles/?p=4088#comment-295330 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. 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.

]]>