The Hope Scholarship Credit is available only if a taxpayers modified adjusted gross income is below a specified amount. How does a taxpayer know what his/her modified adjusted gross income is?
For most taxpayers, modified adjusted gross income is the same as adjusted gross income. Taxpayers compute adjusted gross income as part of completing a Federal income tax return. For those few taxpayers who earn income abroad or receive income from certain American territories or possessions, modified adjusted gross income will be greater than adjusted gross income. In those cases, the individual’s adjusted gross income will be increased by: (1) certain amounts that the individual earns abroad, (2) amounts effectively connected with the individual’s conduct of a trade or business or derived from sources in Guam, American Samoa, or the Northern Mariana Islands (if the individual is a resident of the possession where the source of the income is located), and (3) amounts derived from sources in Puerto Rico (if the individual is a Puerto Rican resident).
Related Questions
- If a married taxpayer files a separate return, may the taxpayer claim the Hope Scholarship Credit or the Lifetime Learning Credit on his/her income tax return?
- Is eligibility for the HOPE Scholarship limited by a student’s adjusted gross income on his/her FAFSA?
- How does a taxpayer know what his/her modified adjusted gross income is?
