Hope Education Tax Credit & Estimated Taxes

If you are paying estimated taxes in 2009 and have children in college, here’s a change to the Hope Education Tax Credit that the IRS suggests that you take into consideration.

Along with the Lifelong Learning credit, the Hope credit was designed to lessen the burden of higher education.

According to the IRS, there’s good news to report about the Hope credit. It has been expanded.

For 2009 and 2010, the maximum credit is $2,500, the credit is available for the first 4 years of post-secondary education, and 40% of the credit is refundable. The increased benefits will be phased out if your modified AGI is above $80,000 ($160,000 if married filing jointly).