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For 2007, the amount of your Hope or Lifetime Learning credit is gradually reduced if your modified adjusted gross income is between $47,000 and $57,000 (between $94,000 and $114,000 if you file a joint return).
The credits are important tax breaks for people pursuing higher educations or financing higher educations for family members.
In 2006, the limits were between $45,000 and $55,000 for single taxpayers and between $90,000 and $110,000 for married couples filing jointly.
In 2008, the limits will rise again, to between $48,000 and $58,000 for singles and between $96,000 and $106,000 for joint filers.
For more information, see Chapters 2 and 3 in Publication 970, Tax Benefits for Education.
Published Dec. 6, 2007
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