Hope Scholarship Tax Credit

Students or their parents can claim a tax credit of up to $1,500 per student per year for out-of-pocket tuition and fees for the first two years of undergraduate study at an eligible school. Students must be enrolled at least half-time in a program that leads to a degree, certificate or other recognized educational credential. An eligible school is any college, university, vocational school or other school eligible to participate in federal student financial aid programs.

Eligibility

You are eligible for the full $1,500 credit if your modified adjusted gross income (AGI) is $43,000 or less if you file an individual tax return or $87,000 or less if you file a joint tax return. The amount of your Hope credit is gradually reduced if your AGI is between $43,000 and $53,000 (individual tax return) or between $87,000 and $105,000 (joint tax return). You cannot claim a credit if your AGI is $53,000 or more if you file an individual tax return or $107,000 or more if you file a joint tax return.

Limit

The Hope credit is equal to 100 percent of the first $1,000 you spend on tuition and fees and 50 percent of the next $1,000. You cannot claim the Hope Scholarship tax credit and the Lifetime Learning tax credit in the same year for the same student.

For more information, contact:
Internal Revenue Service (I.R.S.)
Phone: 1.800.829.3676

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