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Tax Credits and Federal Financial Aid
Income tax credits for education costs reduce a student's or their family's federal taxes. These credits are based on college tuition and fee charges, minus grants, scholarships, and other tax-free educational assistance. Parents or guardians who claim a student on their income tax return are eligible to take the credit on their taxes. If a student is not claimed as a dependent on any one else's tax return, the student would be eligible to claim the credit. Single filers with incomes greater than $50,000 or joint filers with adjusted gross incomes greater than $100,000 are not eligible to claim credits.
Students or parents may claim the Hope Tax Credit during the first two years of college up to a maximum of $1,500. Students or parents may also claim the Lifetime Learning Tax Credit for any level of post-secondary study up to a current maximum of $1,000. Also note that only one type of credit (Hope or Lifetime Learning) may be claimed for the student in any given year.
SEO provides information on a variety of federal aid sources including income tax credits for education costs, which reduce a student's or their family's federal taxes. To apply electronically or to find out more about federal student aid, visit the US Department of Education. This site provides the list of Federal School Codes needed to complete Step Five of the Free Application for Federal Student Aid. For more free information about state programs, contact the District of Columbia State Education Office. The Federal Student Aid Center also has information about state aid programs in all of the states:
1-800-4-FED-AID (1-800-433-3243)
(TDD 1-800-730-8913)
Monday-Friday, 8:00 am- 8:00 pm EST
Find out if you are eligible for federal financial aid and discover the variety of aid sources.
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