| |
Hope
Credit (Education Credit) |
Lifetime
Learning Credit (Education Credit) |
Education
IRA |
Traditional
and Roth IRAs |
Interest
Paid on Student Loans |
| What is
your benefit? |
Tax credit
(nonrefundable) |
Tax credit
(nonrefundable) |
Withdrawals are
tax free |
No 10%
additional tax on early withdrawal |
Deduction to
arrive at adjusted gross income |
| What is
the annual limit? |
Up to $1,500
per student 100% of first $1,000
50% of next $1,000 |
Up to $1,000
per family 20% of tuition, up to $5,000 |
$500
contribution per child under 18 |
Amount of
qualifying expenses |
1998: $1,000 1999: $1,500
2000: $2,000
2001: $2,500 |
| What
expenses qualify besides tuition and required enrollment fees? |
N/A |
N/A |
Books,
supplies, equipment; room & board if at least half-time attendance; payments to
qualified state tuition program |
Books,
supplies, equipment; room & board if at least half-time attendance |
Books,
supplies, equipment; room & board; transportation; other necessary expenses |
| What
education qualifies? |
First 2 years
of undergraduate |
All
undergraduate and graduate levels |
All
undergraduate and graduate levels |
All
undergraduate and graduate levels |
All
undergraduate and graduate levels |
| What
other conditions apply? |
Can be claimed
only for 2 years; must be enrolled at least half-time in a degree program |
Applies to
expenses paid and for school attendance after June 30, 1998 |
Contributions
not deductible; cannot also contribute to qualified state tuition program or claim an
education credit; must withdraw assets at age 30 |
Must receive
entire balance or begin receiving withdrawals by April 1 of year following year in which
age 70½ is reached |
Applies to the
first 60 months' interest; must be enrolled at least half-time in a degree program |
| At what
income range do benefits phase out? |
$40,000 -
$50,000 $80,000 - $100,000 for joint returns |
$40,000 -
$50,000 $80,000 - $100,000 for joint returns |
$95,000 -
$110,000 $150,000 - $160,000 for joint returns |
N/A |
$40,000 -
$55,000 $60,000 - $75,000 for joint returns |
