NASFAA has updated the Federal Tax Benefits for Tuition and Fees Web page for the 2008 tax year.
New For 2008
Hope and Lifetime Learning Credits: For 2008, the amount of a Hope or Lifetime Learning Credit is phased out (gradually reduced) for those with a modified adjusted gross income (AGI) between $48,000 and $58,000 ($96,000 and $116,000 for joint returns). Those with a modified AGI of $58,000 or more ($116,000 for joint returns) cannot claim Hope or Lifetime Learning Credits.
Hope credit: Beginning in 2008, the amount of the Hope credit (per eligible student) is the sum of:
- 100% of the first $1,200 ($2,400 for students in a Midwestern disaster area) of qualified education expenses paid for the eligible student, and
- 50% of the next $1,200 ($2,400 for students in a Midwestern disaster area) of qualified education expenses paid for that student.
The maximum amount of Hope credit in 2008 is $1,800 per student ($3,600 for students in Midwestern disaster areas).
Tuition and Fees Tax Deduction: Congress extended this tax benefit until Dec. 31, 2009 as part of the $700 billion economic stimulus package.
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.
