You may be able to take a tax credit up to $1,650 on your income tax return for qualified tuition and related expenses . This credit is only available for the first two years of study for an eligible student who has paid qualified tuition and related educational expenses. The tax credit can be taken by the person who claims the student as a dependent on his/her tax return or by the student if he/she is not a dependent. The tax credit amount is phased out based on your modified adjusted gross income.

Lifetime Learning Tax Credit

You may be able to take a tax credit up to $2,000 on your income tax return for qualified tuition and related expenses. This credit is available for the remaining years of your education, which can include graduate school. The tax credit can be taken by the person who claims the student as a dependent on his/her tax return or by the student if he/she is not a dependent. This credit also has the same income phase-outs as the Hope Tax Credit. This credit is family-based rather than based on the number of dependents in your family as with the Hope Tax Credit.