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Lifetime Learning Tax Credit — News for the Week of May 5th, 2008

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Online University Highlight of the Week

Full Sail University

"Full Sail attracts people from all over the world with a passion to create, music, film, games, animation, design, and live events," provided a focused education for individuals interested in learning about and working in the entertainment industry.

Full Sail was officially founded in 1979 and its main campus is located in Winter Park, Florida. Full Sail University is nationally accredited by the Accrediting Commission of Career Schools and Colleges of Technology. Below is a list of programs delivered online by Full Sail:


Financial Aid: Lifetime Learning Tax Credit

I'm only planning to take a few courses here and there each year and won't qualify for financial aid. Is there anything to help me cover tuition costs and other expenses?

Yes! You are able to claim a Lifetime Learning Credit when they file their annual tax return. This is a tax credit that can be claimed year after year for a maximum amount of two thousand dollars a year. A tax credit is not the same as a deduction. According to the Internal Revenue Service (IRS): "Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself."

The tax credit will cover educational expenses paid to the academic institution that are required for attendance. The tax credit can be applied to tuition, because that fee must be paid directly to the school. Does it cover the cost of books and supplies? No, unless the cost of books and supplies is part of the tuition, or if the books and supplies are only available through your academic institution.

It's important to do the math when applying tax credits to your return. Although you may not be able to apply the tax credit to your books or course materials, those items are tax deductible. Learn more about tax credit programs that can help you fund your education in our article Education Tax Benefits and Online Education.


Online Student Interview: Steve

"In a sense I've been doing this so that my credentials will catch up to the knowledge I already possess."

Over the years Steve acquired college credit from several colleges and universities. "I would do what I could whenever I had the opportunity and whenever the time constraint was low enough."

Today, he is a director of e-learning at a university and helps prospective and current students learn more about what distance learning and online courses.

"If I had to spend that much time in a classroom, it would be a real challenge to schedule that."

Read about the experience of this 33-year-old husband and father of four who is already making a difference in the educational community.

Are you thinking about going back to school? Waiting to start your first class? No matter where you are in your journey, you may appreciate our Guide to Online Education. It contains helpful answers to some important questions about the (often confusing!) world of distance learning and online education.


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