How Do You Calculate A Hope Tax Credit?
Pages and pages of rules and regulations are produced by the Internal Revenue Service each year regarding credits and deductions you may or may not be able to take when filing your tax return. The Hope Credit (or now the American Opportunity Tax credit) is one of these. If you paid tuition for classes you took at an eligible educational facility, you may be able to qualify for this credit. Generally, the Hope Credit covers up to $2,500 of qualifying expenses, but use the steps below to determine your individual status. Check your records to make sure you qualify for the Hope Credit. You must have paid tuition for post-high school classes for yourself, your spouse or your dependent for whom you claim an exemption on your taxes. The student for whom you paid tuition must have been “eligible.” For example, in order for a student to qualify for the 2008 tax year, he or she must have been at least a half-time student for each semester (fall and spring) of 2008, and not have had any convicti
