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Posted: 2/2/2006 11:03:14 AM EDT
Link Posted: 2/2/2006 11:16:24 AM EDT
Whichever gets you the bigger refund is the better choice. Depending on your situation, it could be the deduction or the credit. Do the math and then you'll know.
Link Posted: 2/16/2006 3:53:45 AM EDT
I have always taken the credit, since you really have to have more than $10,000 in itemized deductions to start making things work the other way. Remember, the CREDIT is "x" dollars right off your tax bill, where the deduction is a reduction in your taxable income.
Link Posted: 2/16/2006 6:54:22 AM EDT
If you can get more than $1,500 back from the deductions (that would be a hell of a lot of deductions) then take the deductions, otherwise take the credit (the credit is good for up to $1,500).
Link Posted: 2/16/2006 7:03:24 AM EDT
We did our taxes last week, and the Hope credit had about a $1k advantage over the other deductions.
Link Posted: 2/16/2006 7:12:13 AM EDT
IIRC, one will give you more money back because as mentioned in previous posts it is a direct reduction of taxes paid. The drawback (again, IIRC) is that you can only claim the HOPE education credit for two years PERIOD. So if you are going to school or have <21 y/o kids who will be in school for more than two years, you are better off taking the standard deduction of f AGI (adjusted gross income). This will lower your taxable income but it won't have the impact of the HOPE credit. The benefit being, of course, the ability to take the deduction for more than two years.

As always, check with a tax professional in your area.

Trey
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