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SOS Business Services

“Help when you need it.”

PO Box 720800, Piñon Hills, CA 92372 • (760) 868-0901
(866) 467-8TAX [(866) 467-8829]

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Educational Credits and Deductions

You study; we'll take care of your taxes.As a student, you can claim several tax credits and deductions. We've tried to summarize these for you below.

Much of this can be confusing if you don't work with it every day. We will be glad to help you navigate the educational tax waters. Contact us for a no-obligation consultation.

Type Requirements Deduction/Credit
HOPE Credit
  • Enrolled in a degree program
  • In one of the first two years of post-secondary education
    (Freshman or Sophomore Standing 1/1/2005)
  • Enrolled at least one half of a full load
  • No felony drug convictions
  • 100% of the first $1,000 in qualified expenses
  • 50% of the second $1,000.
  • Limit is per student


LIFETIME Learning Credit
  • Enrolled in a degree program or to improve job skills
  • 20% of the first $10,000 in qualified expenses
  • Limit is per return
TUITION & FEES Deduction
  • Accredited Institution
  • Maximum deduction depends on modified adjusted gross income
  • Deduct $2000/$4000 of qualified expenses
  • Limit is per return
Work-related Education and Training
  • Educational expenses incurred to improve existing job skills.
  • Does not apply to training  for a new career.
  • Can be deducted on Schedule A or Schedule C depending on type of income.
  • In addition to tuition and fees, qualified work-related education
    expenses can include:
    • Books
    • Mileage
    • Office Supplies
    • Etc.
To be deductible or credited:
  • Qualified expenses include tuition and fees -- books only if required to buy them from the institution as a condition of enrollment (campus book store doesn't count)
  • Expenses must be incurred at an institution eligible to administer financial aid (which includes many career schools – truck driving, cosmetology)