Income Tax Changes : Lifetime Learning and Hope Credits

Lifetime Learning and Hope Credits

In 2010, tax law changes also apply to the Hope Credit. The maximum Hope Credit, available for the first two years of post-secondary education, has increased to $2,500. This includes 100% of qualifying tuition and related expense not in excess of $2,000 plus 25% of those expenses that do not exceed $4,000.

In 2010, the taxpayer's modified adjusted gross income will be used to determine the reduction in the amount of the Hope Scholarship and Lifetime Learning Credits. Credit reductions start for taxpayers with an AGI in excess of $80,000, or $160,000 for those filing joint returns for the Hope Credit. The threshold for the Lifetime Learning Credit remains at $50,000, or $100,000 for those filing joint returns in 2010.