Credit/
deduction applies to

Qualified tuition and related expenses for first two years of under- graduate education

Qualified tuition and related expenses for courses taken throughout lifetime to improve or acquire job skills

Interest paid on a qualified student loan

Qualified higher education expenses paid in 2007 only

Qualified education expenses include room and board?

No

No

No

No

Amount of credit/
deduction

$1,800 maximum

$2,000 maximum

$2,500 maximum

$4,000 maximum

Income limits on who is eligible to take credit/
deduction

Single filers: full credit available if modified adjusted gross income (MAGI) $48,000 or less (in 2008, $47,000 in 2007)

(Partial credit available if MAGI between $48,000 and $58,000 in 2008; $47,000 and $57,000 in 2007)

Joint filers: full credit available if MAGI $96,000 or less in 2008 ($94,000 or less in 2007)
(Partial credit available if MAGI between $96,000 and $116,000 in 2008; $94,000 and $114,000 in 2007)

Same as Hope credit

Single filers: full deduction available if modified adjusted gross income (MAGI) $55,000 or less (in 2008; same in 2007) (Partial deduction available if MAGI between $55,000 and $70,000 in 2008; same in 2007) Joint filers: full deduction available if MAGI $115,000 or less in 2008; $110,000 in 2007 (Partial deduction available if MAGI between $115,000 and $145,000 in 2008; $110,000 and $140,000 in 2007)

Single filers: $4,000 deduction available if modified adjusted gross income (MAGI) $65,000 or less, $2,000 deduction available if MAGI between $65,000 and $80,000 Joint filers: $4,000 deduction available if MAGI $130,000 or less, $2,000 deduction available if MAGI between $130,000 and $160,000

Less than half-time students or graduate students eligible?

No

Yes

Less than half-time--no; graduate students--yes

Yes

Limit on number of students in family for whom credit/
deduction can be taken in same year?

No

No, but the annual credit is limited to $2,000 per tax return

No; if applicable, parents can claim the deduction for more than one child in the same year

No; if applicable, parents can claim the deduction for more than one child in the same year

Credit/
deduction available in same year as tax-free distribution from a Coverdell education savings account (formerly known as an education IRA)?

Yes

Yes

Yes

Yes, but not available in a tax year in which Hope credit or Lifetime Learning credit taken for same student. Also, qualifying expenses are reduced by Coverdell education savings account distributions.

Must student be enrolled for a degree or in other program leading to an educational credential?

Yes

No

Yes

No

Allowed if student has a controlled substance conviction?

No

Yes

Yes

Yes