Education Tax Credits
The Casey Foundation supports the Earned Income Tax Credit (EITC), asset building and workforce development as critical components for building family economic success. Education tax credits, the Hope Scholarship Credit and the Lifetime Learning Tax Credit, provide one more tool to help low-income families and individuals attain the education they need to move up the economic ladder. Initiated in 1997, the credits reach 7.2 million filers each year, connecting them with $5.2 billion in tax credits. Both credits are non-refundable (they do not benefit tax filers who have no tax liability) and they cover only money spent for tuition and fees—not books, supplies or room/board.
Unfortunately, many people are not aware of these credits and the take-up rate is low. Full-time students and dependents receive the education tax credits much more frequently than working adult students. Casey has supported research on the tax credits to learn more about how they are claimed now, how they might be restructured to more effectively support workforce development efforts, and what tools or strategies might be employed to increase the take-up rate among working adult students.
As part of this work, Casey recently commissioned and released several reports: