The Taxpayer Relief Act of 1997

The Hope credit and the Lifetime Learning credit are tax credits that may be available to you if you pay higher education costs. A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. You can claim the Hope credit for the first two years of an eligible student’s postsecondary education and claim the Lifetime Learning credit for the same student in later years.

For additional information about the Taxpayer Relief Act, consult your tax adviser or request IRS Publication 970, Tax Benefits for Higher Education, by contacting the IRS at 800-829-1040. The link is IRS Web Article, Tax Incentives for Higher Education Expenses. JCCC will not provide tax advice.