How Do US College Tuition Tax Credits Compare Overseas?

The Hope Scholarship and Lifetime Learning college tuition tax credits do not have a comparative counterpart overseas.

Meeting the Qualification for the Tuition Tax Credit

Taxpayers that meet the income qualification for either the Hope or the Lifetime Learning credits can use the credit to reduce their taxes. The income is determined by their modified adjusted gross income, as stated by the IRS. The credit is not a refund given directly to students or family members paying for college, but a credit against taxes due. In order to qualify, a taxpayer must owe taxes in order to use the credit as an offset. The amounts are:

• Up to $1,800 for the Hope credit

• $2,000 for the Lifetime Learning credit.

Form 1098-T

The credit can apply to studies done overseas provided the institution meets the requirements of the IRS to offer the credit. A taxpayer that claims the credit must receive from a qualifying institution, whether domestic or foreign, a Form 1098-T in order to attach to their filing to claim the tuition tax credit.