I pay 8500 dollars per year for tuition. Which is better to claim, the hope tax or lifetime learning credit?

Answer 1

Hope Tax Credit Requirements~
1) For the first 2 years of post secondary education
2) Enrolled at least half time in school for a degree
3) No felony convictions

- Can take 100% of qualified education expenses, 50% of next $1000 of qualified expenses ($1500 max)

Lifetime Learning
1) Enrolled in school
2) Don't need to be going for a degree
3) No 2 year restriction.

Credit allowed to claim is 20% of qualified education expenses up to $10,000. SO $2000 is the most you can take.

Answer 2

If you are eligible for both credits, the Hope Credit is worth $1,650 to you and the Lifetime Learning Credit is worth $1,700. So the LLC is worth slightly more in your case.

Answer 3

Hope is usually better if you qualify for it, but the rules for the two credits are different. If you qualify for both, figure it both ways and take the one that gives you the highest amount.

Answer 4

As with any other individual tax question, there are just too many variables to answer your question.

You have to fill out the whole tax return and run the numbers both ways.