It remains a far distant dream for some people to go for higher education.
With the cost of higher education going higher and higher it is a struggle to make your dream come true.
But if you are keen on something you can find a way out.
Even if you are working and want to improve your skills by studying more there is monetary relief.
There is much tax relief to be availed of if you are paying for education.
It does not matter whether you are paying for your own education or the education of your spouse or your dependents.
The tax relief comes in the form of a credit.
There are two types of credit.
The first is Hope Credit.
It is available if the student is enrolled for a program of study leading to a certificate or degree for minimum one academic period during the tax year.
This credit is limited to those students who are yet to complete the initial two years of post-secondary education, in other words, to freshmen and sophomores.
Hope credit is available only for two tax years.
Of course, you can claim it separately for each eligible person such as your spouse or other dependents.
The Lifetime Learning Credit is available life long as the name implies.
The eligible persons are the same as in Hope credit.
It is also wider in application in terms of qualifying courses.
However, the course should be for the purpose of acquiring and enhancing skills related to a job.
There is no limitation of number of tax years for which the credit can be claimed.
So, enjoy learning while claiming tax relief on your educational expense.