NASFAA has updated the Federal Tax Benefits for Tuition and Fees Web page for the 2007 tax year. In 2007, the income limits to be eligible for the Hope Scholarship Tax Credit and the Lifetime Learning Tax Credit were increased $2,000 to $57,000 ($114,000 for married couples filing a joint return).

For the 2007 tax year, the amount of Hope or Lifetime Learning credit is gradually reduced (phased out) if the modified adjusted gross income (MAGI) is between $47, 000 and $57,000 ($94,000 and $114,000 for joint returns). Those with a MAGI of $57,000 or more ($114,000 for joint returns) cannot claim a credit. This is a $2,000 increase from the 2006 limits of $45,000 and $55,000 ($90,000 and $110,000 for joint returns).

NASFAA created this general guide to federal education-related tax benefits for students and their families. It provides basic information about the Hope Scholarship Tax Credit, the Lifetime Learning Tax Credit, and the Tuition and Fees Tax Deduction. It also provides links to more detailed information provided by the IRS.

By Haley Chitty
NASFAA Assistant Director for Communications

Posted 01/31/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.