1545 6th Street Ste 201
Green Bay, WI 54304
920-884-2233
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Education Credits
The Hope and Lifetime Learning credits are available to individuals for out-of-pocket
tuition expenses incurred by students pursuing college degrees, graduate degrees, or vocational training.
A Tuition and Fees deduction is another option to reduce the tax burden.
Only one credit/deduction may be claimed for a student so we will help you elect the one with the
greatest tax benefit.
Hope Credit for 2009 and 2010
The American Opportunity Tax credit (AOC)is a modification of the Hope Credit.
- The maximum amount of the AOC is $2,500 per student.
- You can claim it for the first four years of post-secondary education. (Previously only the
first two years.)
- Generally, 40% is now a refundable credit for most taxpayers, which means that you can receive up to
$1,000 even if you owe no taxes.
- The term "qualified tuition and related expenses" has been expanded to include expenditures
for "course materials." This means books, supplies, and equipment needed for a course of study whether
or not the materials must be purchased from the educational institution as a condition of
enrollment or attendance.
- The student must be enrolled at least half-time.
- The student has no felony drug convictions.
Lifetime Learning Credit
- Maximum non-refundable credit of $2,000 per year
- For all eligible students enrolled in one or more courses at an eligible educational institution
Requirements to Claim Hope (AOC) and Lifetime Learning Credit
- You paid qualified higher education expenses for an eligible student
- The student is yourself, your spouse, or a dependent for whom you are claiming an exemption
- The expenses were paid for the current tax year or the first three months of the succeeding tax year
- Your filing status is single, head of household, qualifying widow, or married filing jointly
- You cannot be claimed as a dependent on another person's tax return
- Your 2009 modified adjusted gross income is less than $60,000 ($120,000 for married filing jointly).
Qualifying Expenses
- Tuition and related expenses required for attendance at an eligible educational institution.
- An eligible educational institution is a college, university, vocational school, or other post-secondary
educational institution eligible to participate in a student aid program administrated by the Department of Education.
- Related expenses include student activity fees, expenses for course-related books, supplies, and equipment
included in education expenses.
- The expenses are not paid with a tax-free scholarship, fellowship, grant, or through an employer-provided
education assistance program. This includes Pell Grants and Veterans' educational assistance.
Non-Qualifying Expenses
- Room and board
- Insurance
- Transportation
- Medical expenses
- Expenses related to sports, games, hobbies, and non-credit courses, unless the course is
required as part of the degree program.
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