What is the Hope Scholarship Credit?
The Hope Scholarship is a tax credit designed to help make the first two years of college or vocational school affordable. Students may claim up to 100 percent of the first $1,000 of tuition and required fees and a 50 percent credit on the second $1,000, for a maximum possible tax credit of $1,500. This credit may be claimed for any paid tuition and required fees minus grants, scholarships, or other tax-free educational assistance and will be available for payments made after December 31, 1997 for college enrollment after that date. Beginning in 2005, the amount of your Hope credit is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $43,000 and $53,000 for single tax filers, and between $87,000 and $107,000 for joint tax filers. The credit may be claimed for any student enrolled in their first two years of college or vocational school and enrolled at least half-time in a degree or certificate program for any portion of the year. The taxpayer can c
For expenses paid in 2008, for academic periods beginning in 2008 or in the first three months of 2009, you may be able to claim a Hope credit of up to $1,800 ($3,600 if in a Midwestern disaster area) for the qualified tuition paid for each eligible student. This credit may be claimed for only the first two years for each eligible student. Additional qualifications for the Hope Scholarship: You can claim a Hope Scholarship Credit only for an eligible student who also meets the following requirements: Is enrolled in one of the first two years of postsecondary education (generally the freshman or sophomore years of college), Is enrolled in a program that leads to a degree, certificate, or other recognized educational credential, Is taking at least one-half of the normal full-time work load for his or her course of study for at least one academic period beginning during the calendar year, and Is free of any felony conviction for possessing or distributing a controlled substance. Amount of
As of January 1, 1998, the undergraduate students in their first two years of post-secondary education, who are enrolled at least half-time, may be eligible for an income tax credit of up to 100% of the first $1,000, and 40% of the next $2,000 paid for tuition and fees in the previous tax year. If you may be claimed as a dependent, the person providing your financial support may be eligible to claim the tax credit.
The Hope Scholarship Credit, or Hope Credit, is a tax credit offered by the US Government for expenses paid for higher education. A tax credit means that the benefit is applied after taxes are deducted whereas a tax deduction means that the benefit is used to reduce the amount of taxable income — the value on which taxes owed for a given year are calculated. The Hope Scholarship Credit is one of two education credits offered by the US Government. The other is the Lifetime Learning Credit. Additionally, there is an education deduction that, if eligible, may give a taxpayer an even lower amount of taxes owed. Since a taxpayer cannot claim more than one benefit in terms of the two credits and the deduction, it’s important for the taxpayer to know the requirements for all three in order to make an informed decision for which is the better route given his or her circumstances. There are a number of eligibility factors for the Hope Scholarship Credit. The education expenses must be the prope
