What is the diff between Lifelong Learning CR and Hope CR?

Question

I have taken the Hope CR for the past two yrs and this yr I will take the Lifelong CR how will it affect me? I usually get back about 1,500 Will I not get any money back this year?

Answer 1

The Hope Credit is available taxpayers who pay tuition and fees for students in their first or second year of postsecondary education. It is a maximum of $1,650 per student for 2006.

The Lifetime Learning Credit is available to taxpayers who pay tuition and fees for any postsecondary student, not just freshmen and sophomores. It is a maximum of $2,000 per return for 2006.

Details on specific qualifications for these credits can be found in Pub 970. Here is the link

http://www.irs.gov/pub/irs-pdf/p970.pdf

Answer 2

QUick update:

Hope credit is 100% of the first $1100 on tuition PLUS 50% of the NEXT $1100.

ALSO, let's not forget about the Tution & Fees deduction. This is a 3rd option, and is usually used by high earners that are phased out of the other 2 credits. It is a deduction against income, rather than a credit against taxes. It is limited to either $2000 or $4000 per taxpayer based on AGI. Like the 2 credits, you can only use ONE of the three options.

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Answer 3

The Hope Scholarship Credit can only be used for 2 years, and only for the first two years of college. It is 100% of the first $1,000 and 50% of the second $1,000, which amounts to $1,500, which is what you got back the last two years.

The Lifetime Learning Credit is equal to 20% of the tuition paid for the first $10,000. The maximum credit is $2,000. Therefore, in order to get back $1,500, your tuition must be at least $7,500. You can claim the Lifetime Learning Credit in any year that you do not claim the Hope Scholarship Credit.

Answer 4

How much you get back will depend on how much tuition you paid, your 2006 filing status, and your 2006 adjusted gross income (the credit phases out starting at $45k if single/head of household/qualifying widow(er) and at $90k if married filing joint; married filing separate is disqualified).

For 2006, the Hope Credit gives a credit of all of the first $1,100 and 50% of the next $1,100 (a maximum of $1,650 per eligible student) of qualfiied tuition. The credit can only be claimed for a student who has not yet completed their first two years of post-secondary education. The student must be enrolled in a degree/certificate/credential program and must take at least a half load for a academic period during the year.

For 2006, the Lifetime Learning Credit gives a credit on 20% of up to $10,000 of qualified tuition and fees paid during 2006. Classes are not required to be part of a degree program to qualify. There is no limit on how many years this credit can be claimed.

Note that the Hope Credit is available PER STUDENT, while the Lifetime Learning Credit is calculated PER TAXPAYER (whoever is filing the return).

Only one credit may be claimed per student each year. Both credits are non-refundable.

Answer 5

The Hope Credit can only be used for the first two years of schooling beyond high school, so you're done with that. The Lifetime learning doesn't have that limit, but is typically less than the Hope Credit.

Answer 6

The Hope credit is limited to the first two years of undergrad, after that you have to claim the Lifetime learning credit. The Lifetime learning credit is 20% of qualified educational expenses (tution and books)

Answer 7

You can't claim the hope credit anymore just the lifetime credit. But you can also claim and of your student loans that you recieved and or paid for. This will give you a greater deduction if you claim the full amount of the loans that you took out for that year. Visit www.shaydzofluv.com for a free estimate

Answer 8

There is basically no difference, but you cannot file the same one in consecutive years.