Comparison of education tax credits and deductions
| Hope credit1 | Lifetime Learning credit | Student loan interest deduction | Deduction for qualified higher education expenses | |
| Credit/deduction applies to | Qualified tuition and related expenses for first four years of undergraduate education | Qualified tuition and related expenses for courses taken throughout lifetime to improve or acquire job skills | Interest paid on a qualified student loan | Not available in 2010 |
| Qualified education expenses include room and board? | No | No | Yes | N/A |
| Amount of credit/deduction in 2010 | $2,500 maximum | $2,000 maximum | $2,500 maximum | N/A |
| Income limits on who is eligible to take credit/deduction in 2010 | Single filers: full credit available if modified adjusted gross income (MAGI) $80,000 or less (same in 2009) Partial credit available if MAGI between $80,000 and $90,000 (same in 2009) Joint filers: full credit available if MAGI $160,000 or less (same in 2009) Partial credit available if MAGI between $160,000 and $180,000 (same in 2009) | Single filers: full credit available if modified adjusted gross income (MAGI) $50,000 or less (same in 2009) Partial credit available if MAGI between $50,000 and $60,000 (same in 2009) Joint filers: full credit available if MAGI $100,000 or less (same in 2009) Partial credit available if MAGI between $100,000 and $120,000 (same in 2009) | Single filers: full deduction available if modified adjusted gross income (MAGI) $60,000 or less (same in 2009) Partial deduction available if MAGI between $60,000 and $75,000 (same in 2009) Joint filers: full deduction available if MAGI $120,000 or less (same in 2009) Partial deduction available if MAGI between $120,000 and $150,000 (same in 2009) | N/A |
| Less than half-time students or graduate students eligible? | No | Yes | Less than half-time--no; graduate students--yes | N/A |
| Limit on number of students in family for whom credit/deduction can be taken in same year? | No | No, but the annual credit is limited to $2,000 per tax return | No; if applicable, parents can claim the deduction for more than one child in the same year | N/A |
| Credit/deduction available in same year as tax-free distribution from a Coverdell education savings account? | Yes | Yes | Yes | N/A |
| Must student be enrolled for a degree or in other program leading to an educational credential? | Yes | No | Yes | N/A |
| Allowed if student has a controlled substance conviction? | No | Yes | Yes | N/A |
Notes:
1 For 2009 and 2010, the Hope credit is renamed the American Opportunity tax credit.