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Also, EdIRA's can't be used in the same year as Hope and Lifetime learning tax credits

This is absolutely true and IF you qualify for these 2 credits (based on your income) it is worth ALOT of money to you. For example, we have 2 children in college (Freshman and Sophomore) therfore, we qualified for 2 Hope credits and got $3000 taken off our income tax owed. These are CREDITS not deductions -- it was straight money in our pockets. If your children are fairly close to going to college, I would not recommend an EdIRA -- the $500 is too small an amount to significantly add up -- I would imagine they would be great for people who have infants or small children.
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