Factoring your Education into your Income Taxes

File your taxes for FREE!

Many people are unaware of the option to file your taxes for free.  You can file your taxes for free online through the IRS website if your income is less than $50,000.  Learn more about filing your taxes for FREE at www.irs.gov/individuals/students/index.html .

Earn a tax credit!

There are two federal government tax credit programs that are offered to parents and students.  They are called the Lifetime Learning and Hope credit and if you meet certain conditions, you could be eligible for $1500 credit.

The Hope Tax Credit

The Hope credit applies towards the first two years of post-secondary education tuition and fees.  You must be enrolled at least half-time to qualify for the credit and the maximum credit allowance is $1500.  Make sure to mention the Hope Tax Credit to your tax preparer or you can reference the IRS website at www.irs.gov/taxtopics/tc605.html .

Lifetime Learning Tax Credit

You are able to try and receive the Lifetime Learning credit each year you are enrolled in a postsecondary education school.  Unlike the Hope Credit, you are able to use the Lifetime Learning credit for only a single course that is used to acquire or improve job skills.  The maximum yearly credit that you may receive is $1000.  Please reference the IRS website at www.irs.gov/taxtopics/tc605.html or contact your tax preparer.