Friday, November 21, 2008

Educational Tax Credits

The tax code has a provision whereby a taxpayer may claim a Hope credit up to $1,650 for qualified tuition and any related expenses paid by himself, his or her spouse and any dependent required for enrollment at any accredited college, university, or some other accredited postsecondary educational institution and can only be claimed for two taxable years for each eligible student.

For a student to be eligible they must hot have completed the first two years of postsecondary education and must be enrolled in a program that leads to a degree or so other for of educational credential. They also must be taking at least one-half of the normal full-time workload for their course of study for at least one period starting at the first of the calendar year and must not have been convicted of a felony related to the possession or distribution of a controlled substance.
The maximum amount that can be claimed is $1,650 per eligible student. This translates into a substantial tax savings for the taxpayer! Does your tax preparer know about this valuable tax credit?

No comments: