Q. My husband is in graduate school. Can any of his tuition or textbook costs be deducted?

A: 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

Recommended Reading:
CCH Business Owner's Toolkit Tax Guide 2001
Whether you choose to go it alone or use a professional, this easy-to-understand title will save you time and money during the preparation of your federal income tax return. Expert commentary guides you every step of the way with a line-by-line look at your sole proprietorship return. And hundreds of tips, examples, charts, and tables will help you make tax-wise decisions throughout the year.

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