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Education Tax Credit Table
Education Credits
Not available to Married Filing Separately
| Hope Scholarship Credit | ||
|---|---|---|
| Must be pursuing an undergraduate degree or other recognized education credential Must be enrolled at least 1/2 time for at least one academic period beginning during the year |
||
| Maximum Credit: | 2007 | 2008 |
| $1,650 per eligible student Available only until first two years of post-secondary education are completed |
$1,800 per eligible student Available only until first two years of post-secondary education are completed |
|
| Credit Computation: | 2007 | 2008 |
| 100% of first $1,100 of qualified education expenses | 100% of first $1,200 of qualified education expenses | |
| 50% of next $1,100 of qualified education expenses | 50% of next $1,200 of qualified education expenses | |
| Lifetime Learning Credit | ||
|---|---|---|
| Available for all years of post-secondary education for courses to acquire or improve job skills May be used for tuition for one or more courses in any year the Hope credit is not claimed |
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| Maximum Credit: | Up to $2,000 per tax return Can be reduced based on your Modified Adjusted Gross Income |
|
| Credit Computation: | 20% of the amount of tuition paid by taxpayer of the first $10,000 of tuition | |
| Income Phase-out Ranges for Education Credits | ||
|---|---|---|
| Allowable amount of education credits is reduced at certain levels of Modified Adjusted Gross Incomes (Modified AGI) | ||
| Modified AGI levels for reduced educations credit phase-out: | ||
| 2007 | 2008 | |
| Married Filing Jointly | $94,000 - $114,000 | $96,000 - $116,000 |
| Single | $47,000 - $57,000 | $48,000 - $58,000 |
| Student Loan Interest Deduction | ||
|---|---|---|
| Interest paid on student loans may be deductible; cannot be taken in addition to Hope or Lifetime Learning Credits | ||
| Maximum Deduction: | $2,500 | |
| Modified AGI levels for reduced educations credit phase-out: | ||
| 2007 | 2008 | |
| Married Filing Jointly | $110,000 - $140,000 | $115,000 - $145,000 |
| Single | $55,000 - $70,000 | $55,000 - $70,000 |
| 12008 ranges based on estimated inflation adjustments. | ||
| Tuition and Fees Deduction – 2007 | ||
|---|---|---|
| Above-the-line deduction for qualifying tuition and related expenses paid for enrollment or attendance; must be coordinated with other educational credits | ||
| Maximum Deduction: | $4,000 | |
| Modified AGI levels: | Maximum Deductible Amount: | |
| Married Filing Jointly | At or below $130,000 | $4,000 |
| Single | At or below $65,000 | $4,000 |
| Married Filing Jointly | >$130,000 but ≤$160,000 | $2,000 |
| Single | >$65,000 but ≤$80,000 | $2,000 |
| Married Filing Jointly | >$160,000 | No deduction |
| Single | >$80,000 | No deduction |
