Financing an education is a difficult task. Make it easier.
The government provides many tax breaks in addition to grants and loans to learn more about grants and loans visit the financial center of the website.
Hope Scholarship Tax Credit- The name of this tax credit is misleading as it is not a scholarship rather it is a tax rebate. A family may claim $1,650 for each family member pursing higher education. Students must at least be taking classes part time. The taxpayer’s income must not exceed $57,000 or $114,000 jointly.
The student cannot have committed a drug related felony.Taxpayers cannot also take the Lifelong Learning tax rebate in conjunction with the Hope Scholarship Tax Credit. The credit can only be used for the first two years of postsecondary education. Fill out IRS Tax form 8863 to apply for the rebate.
Lifetime Learning Tax Credit-The Lifetime Learning Tax Credit is 20% of the taxpayer’s out of pocket expenses for qualified tuition with a maximum of $2,000. The amount of credit will take scholarships, grants, and loans into consideration. The credit can be deployed each year the student is in school. Unlike the Hope Tax Credit, the student does not need to be enrolled at least part time; he/she simply needs to be taking a course at a postsecondary institution. The Lifetime Learning Tax Credit has the same requirements as the Hope Tax Credit. Fill out IRS Tax form 8863 to apply for the rebate.