Saving for College
Stay on Top of Education Credits
In years past, the Hope Credit covered the first two years of college. Parents received a $1,800 credit for those years, and after that, the Lifetime Learning Credit kicked in. If you had children in college a few years ago, hopefully you took advantage of those credits.
Today the Hope Credit is called the American Opportunity Credit. It covers four years of college and provides a credit of $2,500 (as long as your modified adjust gross income is less than $80,000 for single filers and $160,000 for couples who file a joint tax return). Don’t assume the credits you could receive in the past are the only credits you can claim for the next child who enters college make sure you stay on top of changes that can benefit you.