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Education Tax Credits Hope Scholarship & Lifetime Learning Credits In 1997, the Taxpayer Relief Act established two education tax credits and a deduction for student loan interest. The following is general information only and should not be taken as tax advice. Please consult the IRS or a tax professional, or see the Resources and Frequently Asked Questions for more information. The Hope tax credit is available for the first two years of postsecondary education for students enrolled at least half time in a degree or certificate granting program. Taxpayers may claim up to $1,500 per student for qualified tuition and related expenses paid in the calendar year 2007. The Lifetime Learning tax credit applies to any postsecondary education to acquire or improve job skills. There is no minimum enrollment requirement or limit to the number of years it is available. Taxpayers may claim a maximum of $2,000 (20% of $10,000) of qualified expenses paid in the calendar year 2007. The IRS Form 1098-T is issued to all qualified students with tuition and fee expenses paid in 2007. The form is mailed to the student's permanent address during the last week in January and is also available on the Web. The Student Loan Deduction is available for taxpayers who have taken loans to pay qualified higher education expenses and paid interest on those loans during the calendar tax year. The deduction may be taken only for interest paid during the first five (5) years in which loan repayments are required. The IRS Form 1098-E is provided for taxpayers who paid more than $600 in interest during the calendar tax year, and is mailed to the borrower's current billing address during the last week in January. If the form does not reach you by February 14, please call (512) 475-7779, option 3, for assistance. Resources Tax Credit Frequently Asked Questions
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