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What Is It? |
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Who’s Eligible?
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Enrollment Status
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Benefitsshipt |
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Hope
Scholarship
Credit |
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Tax credit available when students are in their first two years of college or post-secondary education. |
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The taxpayer, taxpayer’s spouse or the taxpayer’s dependents may claim the credit.
Taxpayers with less than $57,000 in modified adjusted gross income (or joint filers with less than $114,000) are eligible.
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Student was enrolled at least half-time at an eligible institution (nearly all accredited schools are eligible).
Married students must file joint returns to claim the credit.
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Receive a credit up to $1,650 per eligible student for qualifying expenses.
Single tax filers with up to $47,000 in modified adjusted gross income (or up to $94,000 for joint filers) are eligible for full benefits. |
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Lifetime
Learning
Credit |
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Tax credit for qualified tuition and related expenses available when students are enrolled in eligible educational institutions. |
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The taxpayer, the taxpayer’s spouse or the taxpayer’s dependents may claim the credit.
Taxpayers with less than $57,000 in modified adjusted gross income (or joint filers with less than $114,000) are eligible. |
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Student was enrolled in at least one post-secondary course.
Students not seeking a degree are eligible.
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Receive a credit up to $2,000 per tax return for qualified expenses.
Single tax filers with up to $47,000 in modified adjusted gross income (or up to $94,000 for joint filers) are eligible for full benefits. |
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Student
Loan
Interest
Deduction |
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Allows you to deduct the interest you’ve paid on qualified student loans used for higher education expenses.
Taxpayers cannot use this deduction on loans from relatives or loans under qualified employer plans. |
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Taxpayers with qualified student loans for themselves, a spouse or for a person who was a dependent when the loan was taken out.
Taxpayers with less than $70,000 in modified adjusted gross income (or joint filers with less than $140,000) are eligible.
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Student was enrolled at least half-time in a degree program during loan period. |
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The maximum deduction for 2007 is $2,500.
Single tax filers with up to $55,000 in modified adjusted gross income (or joint filers with up to $110,000) are eligible for the full deduction. |
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Coverdell
Education
Savings
Account
(ESA)
(Formerly
Education IRAs) |
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A trust or custodial account created or organized in the U.S., only for the purpose of paying the qualified education expenses of the account’s designated beneficiary. |
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Generally, designated beneficiaries must be under the age of 18 when accounts are established unless they are special needs beneficiaries.
May open account in the U.S., at any bank or other IRS-approved entity offering Coverdell ESAs. |
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Not applicable. |
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To establish a Coverdell ESA, your modified adjusted gross income must be less than $110,000 (or less than $220,000 for joint filers).
Cannot contribute more than $2,000 for a beneficiary during one tax year.
Coverdell ESA beneficiaries receive tax-free withdrawals to pay for qualified education expenses. |
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