Tax Credit Information

 

Hope and Lifetime Learning Credits

2007 For 2007, the amount of your Hope or lifetime learning credit is phased out (gradually reduced) if your modified adjusted gross income (MAGI) is between $47,000 and $57,000 ($94,000 and $114,000 if you file a joint return). You cannot claim an education credit if your MAGI is $57,000 or more ($114,000 or more if you file a joint return). For more information, see chapters 2 and 3 in Publication 970, Tax Benefits for Education. 2008 Beginning in 2008, the following changes apply to the Hope and lifetime learning (education) credits. Income limits for credit reduction increased. For 2008, the amount of your Hope or lifetime learning credit is phased out (gradually reduced) if your modified adjusted gross income (MAGI) is between $48,000 and $58,000 ($96,000 and $116,000 if you file a joint return). You cannot claim an education credit if your MAGI is $58,000 or more ($116,000 or more if you file a joint return). Hope credit. Beginning in 2008, the amount of the Hope credit (per eligible student) is the sum of: 100% of the first $1,200 of qualified education expenses you paid for the eligible student, and 50% of the next $1,200 of qualified education expenses you paid for that student. The maximum amount of Hope credit you can claim in 2008 is $1,800 per student   --25-JAN-2008

Internal Revenue Service at http://www.irs.gov/publications/p970/index.html or 1-800-829-1040