2006 Education Provisions
Hope Scholarship Credit	$1,500
Lifetime Learning Credit	$2,000
Student Loan Interest Deduction	$2,500
U.S. Saving Bond Interest Exclusion (Phase out)
Single or Head of Household return	$58,500 to $73,500
Married filing Jointly or Qualifying Widow	$87,500 to $117,750
Education Expense Deduction
Single with AGI less than $65,000	$3000
Married Filing Jointly with AGI less than $130,000	$3000
Education Credit (Phase out)
Single, Head of Household	$41,000 - $51,000 (Phase out)
Married Filing Jointly	$82,000 - $102,000 (Phase out)
Single, Head of Household	Over $51,000 = No Credit
Married Filing Jointly	Over $102,000 = No Credit

There are two tax credits for qualifying higher education expenses: The Hope Credit and the Lifetime Learning credit. They are both figured on Form 8863. The key difference between the two is that the Hope credit is available only for the first two years of pursuing a degree at a post-secondary institution, whereas the Lifetime Learning credit may be claimed for any year of post-secondary education and for non-degree courses, such as classes to acquire or improve your job skills.

You may not claim both the Hope credit and the Lifetime Learning credit for the same student's expenses for the same tax year.