Educational Tax Benefits

Hope Tax Credit
An eligible student/parent may be able to claim a federal individual income Hope Tax Credit of up to $1,650 for qualified tuition and related expenses for each eligible student.  The credit may reduce the amount of federal individual income taxes paid.

Lifetime Learning Tax Credit
An eligible student/parent may be able to claim a federal individual income Lifetime Learning Tax Credit of up to $2,000 for qualified tuition and related expenses per tax return per year.  The credit may reduce the amount of federal individual income taxes paid.

Student Loan Interest Deduction
An eligible student/parent may be able to deduct up to $2,500 of the interest paid on students loans on the federal individual income tax return.

Tuition and Fees Deduction
An eligible student/parent may be able to deduct qualified tuition and related expenses even if student/parent does not itemize deductions on Schedule A, Form 1040.  This deduction may be beneficial if the Hope or Lifetime Learning Tax Credit cannot to be used because the income was high.

To learn more about educational tax benefits visit the University of Minnesota Education Tax Benefits site.

The University of Minnesota Morris does not provide personal tax advice. To determine your eligibility for a higher education tax credit, a student loan interest deduction or a deduction for qualified education expenses, contact a personal tax advisor or the Internal Revenue Service (IRS).