Lifetime Learning Tax Credit
If you are an adult who wants to go back to school, change careers, or take a course or two to upgrade your skills OR a college junior, seniors, or graduate and professional degree students you may be eligible for this tax break.
A family will receive a 20% tax credit for the first $5,000 of tuition and required fees paid each year through 2002, and for the first $10,000 thereafter. Just like the “HOPE Scholarship” tax credit, the Lifetime Learning tax credit is available for tuition and required fees less grants, scholarships, and other tax-free educational assistance; families may claim the credit for amounts paid on or after July 1, 1998 for college or vocational school enrollment beginning on or after July 1, 1998.
The maximum credit is determined on a per-taxpayer (family) basis, regardless of the number of post-secondary students in the family, and is phased out at the same income levels as the HOPE Scholarship tax credit. Families will be able to claim the Lifetime Learning tax credit for some members of their family and the HOPE Scholarship tax credit for others who qualify in the same year.
Read more:
http://www.ed.gov/updates/97918tax.html