Education Tax Benefits

Even if you don't itemize your tax deductions, you could save money with these education tax benefits.

• Hope Credit — A tax credit equal to 100% of the first $1,200 and 50% of the next $1,200 per student for tuition and related fees, with a credit maximum of $1,800 per student. It's restricted to the first 2 years of college and can be claimed only twice per student.
• Lifetime Learning Credit — A credit of 20% of your annual tuition and related fees, with a credit maximum of $2,000 per return. The tax credit may be claimed for an unlimited number of years.
• Tuition and Fees Deduction — You can deduct up to $4,000 per student for education costs.
• Student Loan Interest Deduction — Deduct up to $2,500 per return for interest paid on student loans.
• Exclusion for Savings Bond Interest — Some or all of the interest received from eligible bonds issued after 1989 may be excludable if qualified higher education expenses for the year are at least as much as the proceeds of the redeemed bonds.

Note: You can't use the same expenses to claim more than 1 of the above benefits, and other restrictions apply.