Who is eligible for a Hope tax credit?
The Hope credit, part of the Taxpayer Relief Act of 1997, allows most Americans to take a credit of up to $1,500 a year for college tuition and related expenses in the first two years of college. The credit can be claimed for expenses for the education of the taxpayer, a spouse, or a dependent for whom a personal exemption is allowed. The credit is phased out for single filers with modified adjusted gross income between $40,000 and $50,000 and joint filers with modified AGI between $80,000 and $100,000. It s important to note that the Hope Scholarship credit cannot be claimed by a student if the student is claimed as a dependent on another person s tax return. For example, a college freshman who pays his own tuition would not be eligible for the credit if his parents claim him as a dependent. However, the parents could take the tax credit even though the tuition was paid by their son. You can t take the Hope scholarship credit for a student in the same year that you take the Lifetime L
