January 20, 2007
CBS News offered a report on January 18.
There is the Hope Scholarship and Lifetime Learning Tax Credits
The Hope Scholarship is a tax credit that can equal up to $1,650 per qualifying student, per year. It's based on a simple formula: 100 percent of the first $1,100 of a college student's annual tuition and fees, excluding room and board costs, plus 50 percent of the next $1,100. There is a catch: This credit can be claimed for only two tax years per student.
Then there is the Lifetime Learning Credit
The Lifetime Learning credit is available for students after the first two years of school, when the Hope credit is no longer allowed. The Lifetime Learning credit is available for all years of postsecondary education and for courses to acquire or improve job skills. Also, unlike the Hope credit, the Lifetime credit is available for an unlimited number of years and isn't subject to half-time enrollment requirements. The credit equals 20 percent of tuition and fees (up to $10,000), for a maximum annual credit of $2,000.
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