How Does Tuition Tax Credit Work?

Video Transcript

"We're going to talk about tuition tax credits. There are a couple of different tax credits that are available. One is the hope learning tax credit, the other is the lifetime learning tax credit. The hope tax credit is good for up to 1,800 dollars of legitimate educational expenses per year but it's only good for the first two years of education, higher education be it college or vocational school. The lifetime learning credit is good for up to 2,000 dollars per year and can be used ongoing for a number of years. You can't claim both the hope and the lifetime learning credits for the same student in the same year, you have to choose one or the other but depending on your circumstances, it's obviously something you want to try to take advantage of if you are paying tuition for someone in college or vocational school."