Tax & Savings Options
(U.S. Citizens and Permanent Residents eligible)
The 1997 Taxpayer Relief Act offers significant benefits to graduate students paying for their tuition and fees. The Lifetime Learning Credit is available for tuition and fees paid after June 30, 1998. There also is a possible reduction in taxable income by deducting student loan interest payments. Tax relief is subject to income limits.
Loan Interest Payment Deductions - Description of Eligibility - If you paid $600 or more of interest on a qualified student loan during the year, you will have a Student Loan Interest Statement, from the financial institution, from a governmental unit (or any of its subsidiary agencies), from educational institutions, or any other person to whom you had paid student loan interest of $600 or more in the course of their trade or business.
More information on student loan interest deduction and other education benefits is available in Publication 970, Tax Benefits for Education.
Lifetime Learning Credit for Graduate Students and working Americans pursuing lifelong learning to upgrade their skills. - Tax Benefits Guide - For those beyond the first two years of college, or taking classes part-time to improve or upgrade their job skills, the family will receive a 20% tax credit for the first $10,000 spent on tuition. The credit is available for net tuition and fees (less grant aid) paid for post-secondary enrollment after June 30, 1998. The credit is available on a per-taxpayer (family) basis, and is phased out at the same income levels as the HOPE Scholarship.
Take advantage of the Lifetime learning tax-credit at 2008 Form 8863 Education Credits (Hope and Lifetime Learning Credits) (requires Adobe Acrobat Reader to view and print).