College Tax Credit: Savings To Finance Your Future

The college tax credit saves taxpayers hundreds or thousands of dollars in taxes annually. This tax credit makes college more affordable.

Types of College Tax Credits

There are two types of college tax credits:
  • Hope Tax Credit - The Hope Tax Credit is applicable for the first two years of post-secondary education for a total of up to $1800 a year. (The student must be enrolled at least half-time.)
  • Lifetime Tax Credit - The Lifetime Tax Credit applies to education beyond the first two years of post-secondary education (no limit) or any courses for improving job skills (including single courses), for a total of up to $2000 per year.
Who is Eligible

Most people responsible for paying college tuition are eligible for a college tax credit. To be eligible, you must:
  • be the parent of a dependent college student - A dependent college student is an unmarried student under the age of 24 who was enrolled in a post-secondary school full-time for at least five months of the year.
  • be an independent college student - An independent student is anyone who is age 24 or older, any married person under the age of 24, or anyone enrolled in college less than full-time.
  • fall within income guidelines - You will see diminished college tax credit beginning for single returns of $48,000 to $58,000 and joint returns of $96,000 to $116,000 and are ineligible if your return reflects an income higher than that.