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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.

Unfortunately, the only deduction you can take with regard to student loans is for the interest you pay on the loans. If you're not making repayments yet, there is nothing involving the student loan process that you can write off yet.

But you'll enjoy the adjustment to your gross income when you begin working and are in repayment.

You are entitled to one of the education credits or tuition and fees deduction. Using student loans is considered using your own money as far as those credits are concerned. However, if you are the dependent of another taxpayer (your parents maybe) then you don't get the credit - they do.

Edit:

The credits are the Hope Credit if you are in the first or second year of college. The Lifetime learning credit. Or the Tuition and Fees Deduction. If you are using a tax prep software like Turbo Tax it will recommend the one that is most beneficial to your tax return after you input all the information. Your income, tax liability, and amount of education expenses are all factors in determining which one you should take. And of course - your dependent status.

First I want you to clarify what you mean by federal funds. You get to take education credits for tuition and expenses paid up to certain amounts under the Hope Credit and Lifetime Credit setup; it doesn't matter whether the money is from student loans, savings, whatever; the person taking the dependency for you gets to take the credits no matter what the source. Financial aid grants do not count in this equation.

Paid with federal funds - a loan, or grant? If your tuition was paid with a grant, no to education credit. If with loans, yes to education credit if you aren't a dependent, or else yes for whoever you are a dependent of.

Scotty really doesn't know

Line 34 you can deduct tuition and fees or you can take the education credit if you meet the requirements and it doesn't matter how you paid. When you start paying the interest is deductible.

i'm little at a loss for words by ability of lots of the responses asserting that the tax credit became into meant for and would basically be accessible to those adopting from the foster gadget. The tax credit can basically be used to reimburse the adoptive mum and dad for money they spent out of pocket for eligible adoption expenses regarding the adoption technique itself. (in fact you may basically be reimbursed for money you quite spent on expenses) because of the fact adopting from foster-care demands adoptive mum and dad to pay little or no adoption expenses (often a pair hundred money if any), then how would those families quite income on the tax credit, and why would they go as much as $eleven,000 in reimbursements if this became into their basically meant objective? additionally, adoptive mum and dad do no longer recieve any of credit decrease back until they document taxes for the 300 and sixty 5 days whilst the adoption became into finalized. We did no longer recieve any of the tax credit money decrease back until over a 300 and sixty 5 days after our oldest son arrived homestead. families who have not got the money to conceal the ingredient of the fees lined by ability of the tax credit will nevertheless could get a loan, borrow money from relatives, etc, until the get the money decrease back often a million- 5 yrs later (looking on how plenty they owe. in taxes) I additionally don''t comprehend how a relatives would desire to "donate the ten o.k. to a mom, who's in any different case in good shape, to improve her toddler? rather of adopting him/her?" -If the relatives did no longer undertake the toddler then there would be no expenses to reimburse, and that they does no longer be eligible for the tax credit, so how would they supply that money to the mummy? additionally, in our case poverty became into no longer the clarification our toddler's birthmothers placed them for adoption, social stigmas in an exceedingly conservative lifestyle have been regrettably a brilliant component of the clarification, which money can no longer substitute. whether it have been the subject and we've been waiting to get the money to furnish to them, because of the fact their first mothers stay in Seoul, the third maximum costly city in the international, I doubt that $10,000 would do plenty to help a single mom and toddler, relatively because of the fact no different social welfare courses would be presented to help them after the money became into long gone (in all probability approximately 6 months later)