Education Planning Basics
- Education tax credits
You just paid your child's semester bill for college--do you qualify for either the American Opportunity credit (Hope credit) or the Lifetime Learning credit, two education tax credits? Qualifying will depend on your modified adjusted gross income and the amount of qualified tuition and related expenses you've paid over a given year. The American Opportunity credit covers the first four years of undergraduate education, and is generally worth a maximum of $2,500 a year for each qualifying student. The Lifetime Learning credit can be used for continuing education courses, and generally has a $2,000 limit per tax return.