Office of the Bursar

2007 Tax Credits for Higher Education

You could be eligible for 2007 tax credits for the costs of higher education. The Hope Scholarship and Lifetime Learning tax credits are part of the Taxpayer Relief Act of 1997 that allows eligible taxpayers to claim a tax credit against their federal income tax for qualified tuition and related expenses.

The 2007 Lifetime Learning tax credit applies to educational expenses paid during 2007. You may be eligible to claim a credit of up to $2,000 for the total qualified tuition and related expenses paid during the tax year for all eligible students in the family. To qualify for the Lifetime Learning tax credit, eligible students must meet the following requirements:

• Enrolled in one or more classes, including undergraduate, graduate, and continuing education course work.
• Enrolled in any course of instruction to acquire or improve job skills.

The Lifetime Learning tax credit amount is 20% of the first $10,000 you paid for qualified tuition and related expenses for all eligible students in the family. There is no maximum period for which the credit can be claimed for each eligible student.

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Penn State cannot provide individual tax advice and shall not be liable for damages of any kind in connection with this information. Accordingly, you should consult your tax advisor about your specific circumstances.

This information is available in alternative format upon request.