<p>If you qualify for the education credits (and if they have more tax benefit to you than the tuition and fees deduction), you would take them all of the years your child is in college. It doesn’t make sense to not claim a credit you are eligible for in 2010 because whether or not you claim the credit, that still counts as the first year of college. The tax law for education credits for 2011 has not yet been determined, but based in general on previous law, you would take the American Opportunity Credit (previously the Hope Credit) for the first two tax years, and the lifetime learning credit for all of the subsequent years. At this point, the American Opportunity Credit is only for 2009 and 2010 tax years.</p>
<p>Is it possible that your child’s college would let you ‘apply’ the amount of the scholarship against room/board instead of against tuition?</p>
<p>If you pay by December 2010 for credits above 15 for the Spring 2011 semester, you can count this tuition payment in the calculation of the 2010 American Opportunity Credit.</p>
<p>Does you daughter’s school require that she purchase a laptop? If so, this expense along with fees and books are amounts which can be included in the calculation of the credit.</p>