Can we take the lifetime college credits for 2 kids?

Discussion in 'Budget Board' started by leahjade, Mar 16, 2008.

  1. leahjade

    leahjade DIS Veteran

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    We got $2000 credit for our college daughter and wondered if we would be able to take $2000 additional when we have 2 kids in college?
     
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  3. Cindy B

    Cindy B <font color=blue>Have taken some furniture polish

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    I don't know about your own children.. but DH and I are both college students and we were able to take it for two people.
     
  4. tar heel

    tar heel <font color=royalblue>Where will we get our news i

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    Yes, you can.

    Remember, though, if either of them are in the first two years of school, the Hope credit may be worth more.
     
  5. leahjade

    leahjade DIS Veteran

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    My friend just said she took it for her and her daughter and got to deduct $4000 by using Turbo Tax but I thought it said $2000 was the limit per family.
     
  6. imsayin

    imsayin DIS Veteran

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    You can take 1 of the following, if you qualify and don't earn more than the designated amount (differs for each):

    Hope credit: up to $1650 per eligible student
    Lifetime learning credit: up to $2000 per return

    Tuition & Fees deduction: maximum of $4000

    Check IRS Publication 970 for specifics on each.
     
  7. leahjade

    leahjade DIS Veteran

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    is the tuition and fees $4000 different than the lifetime learning credit? is there a different form for that? I hope I didn't screw up my tax form - I only took the $2000 credit though we had much more than that in tuition.
     
  8. jenm2878

    jenm2878 <font color=blue>He's not going to claw his way ou

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    You are better off taking the $2,000 credit rather then the $4,000 deduction. The credit is a dollar for dollar reduction in your tax while the deduction savings is the $4,000 x your tax rate. Unless you're paying more then a 50% tax rate, the credit is a better deal.

    Ex: $4,000 x 25% tax rate = $1,000 tax savings versus $2,000 tax savings with credit.
     
  9. imsayin

    imsayin DIS Veteran

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    Some people don't qualify for the credit based on their income, but they can take the deduction as it has a higher income limit.
     

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