Two tax credits, the Hope scholarship credit
and the lifetime learning credit, are provided for education expenses. These
credits generally are available for expenses incurred to pay tuition and related
fees. the Hope scholarship credit is available only for more than half-time
students, while the lifetime learning credit is available for a broader range of
expenses. The credits are also limited if your adjusted gross income is at least
$80,000 combined and are completely phased out at $100,000.
The IRS has a very good publication to help you
with this information, called "Publication 17: Your Federal Income
Tax." Chapter 36 discusses the education credits. You can download this
publication from the IRS for free from their Web site at:
http://www.irs.ustreas.gov/plain/forms_pubs/pubs.html