How much do you have to pay to take education credit?

Is there a certain amount that you have to pay in tuition to claim an education credit? Does your graduation fees and nursing pin costs count as a deduction if it was required in order to graduate?

As a graduating senior, you have a choice between taking a tuition and fees deduction, or the lifetime learning credit.

With a tuition and fees deduction, you can reduce your income subject to tax, up to $4000. There is no minimum amount. If you have qualified out of pocket expenses, or expenses paid by loans, or borrowed funds, you may claim the deduction. Expenses paid on your behalf by a third party are considered paid to the school by you (unless you are a dependent)

You may include in qualified expenses any student activity fees, any course-related books, supplies, and equipment if they were a requirement of enrollment, and attendance. You must reduce the amount of your out of pocket expenses by any tax free education assistance you receive.
Tuition and Fee Deduction
http://www.irs.gov/publications/p970/ch0...

The Lifetime Learning Credit
http://www.irs.gov/publications/p970/ch0...
The Lifetime Learning credit is 20% of the first $10,000 in qualified expenses. The maximum amount of the credit is $2000, for 2007. You should receive a 1098-T from your school, showing the amount you paid.

Education credits can be limited depending on your income. If you are a dependent, see IRS Pub 970 for details on expenses you can claim.

If you are paying interest on a student loan, that interest is deductible.

If the nursing pin is required of all who graduate, it can be considered a qualified expense if you paid the school as a condition of graduation. Also any stethoscope, blood pressure monitor, nursing uniforms, scrubs, or other medical equipment, and supplies required by your courses, for which you paid directly to the school as a condition of enrollment.

Your fees associated with graduation are qualified expenses if they were paid directly to the school.

For more information and details See IRS Publication 970
http://www.irs.gov/publications/p970/ind...

In order to use an education credit you must owe taxes. If you don't owe, there is not benefit.

The graduation fees would be deductible. The pin is not.