What is the Hope Scholarship?
The Hope Scholarship Tax credit is a tax credit equal to 100% of the 1st $1,000 of a student’s qualified educational expenses (i.e. tuition and mandatory fees) plus 50% of the next $1,000. The maximum credit is $1,500 per student in each of the first two years of a post secondary degree program. The maximum credit will increase for inflation after 2001. Students must be enrolled at least halftime during at least one academic period that begins during a tax year.
The Hope Scholarship is actually a tax credit established by the Taxpayer Relief Act of 1997 (TRA97) that is available for “qualified tuition and educational fees” paid by eligible taxpayers. The Hope Scholarship tax credit and the Lifelong Learning tax credit are not refundable, which means that a family must have a tax liability in order to claim the credit. Scholarships and grants that are not subject to taxation are deducted from the amount of “qualified” tuition and fees before establishing any tax credit. Students and families interested in additional information on the Hope and Lifelong Learning Tax Credits should download and refer to IRS Publication 970, Tax Benefits for Higher Education or consult with their tax advisor regarding the various tax provisions related to postsecondary educational expenses and education savings incentives.
(Back to Top) The state of Georgia has a “Hope Scholarship” program that is funded through the state lottery for Georgia residents but most recent references to the “Hope Scholarship” refer to a provision contained in the Taxpayer Relief Act of 1998 (TRA97). That “Hope Scholarship” is actually a tax credit that will be available for “qualified tuition and educational fees” paid on or after by eligible taxpayers. The Hope scholarship tax credit and the Lifelong Learning tax credit are not refundable which means that a family must have a tax liability in order to claim the credit. Scholarships and grants that are not subject to taxation are deducted from the amount of “qualified” tuition and fees before establishing any tax credit. Students and families interested in additional information on the Hope and Lifelong Learning Tax Credits should download and refer to IRS Publication 970, Tax Benefits for Higher Education, or consult with their tax adviser regarding the various tax provisions
(Back to Top) The “Hope Scholarship” refers to a provision contained in the Taxpayer Relief Act of 1998 (TRA97). That “Hope Scholarship” is actually a tax credit that will be available for “qualified tuition and educational fees” paid on or after by eligible taxpayers. The Hope scholarship tax credit and the Lifelong Learning tax credit are not refundable which means that a family must have a tax liability in order to claim the credit. Scholarships and grants that are not subject to taxation are deducted from the amount of “qualified” tuition and fees before establishing any tax credit. Students and families interested in additional information on the Hope and Lifelong Learning Tax Credits should download and refer to IRS Publication 970, Tax Benefits for Higher Education, or consult with their tax adviser regarding the various tax provisions related to postsecondary educational expenses and education savings incentives.
Related Questions
- Can I still benefit from Hope Scholarship tax credits (also known as American Opportunity tax credit) and/or Lifetime Learning Credits if I contribute to a NextGen Account?
- How do I get an application for the American Opportunity Tax Credit (formerly Hope Scholarship)?
- Who is eligible for a Hope Scholarship tax credit?
