The
Hope credit is a tax credit that may be available to you
if you pay higher education costs. You may be able to claim
Hope
credit for qualified tuition and related expenses paid for
each eligible student in your family. For purposes of the
Hope credit, an eligible student is a student who meets all
of the following requirements:
- Did not have expenses that were used to figure a Hope
credit in any 2 earlier years.
- Had not completed the
first 2 years of postsecondary education (generally,
the freshman and sophomore years of college)
before 2008.
- Was enrolled at least half time
in a program that leads to a degree, certificate, or
other recognized
educational
credential for at least one academic period beginning
in 2008.
- Was free of any federal or state
felony conviction for possessing or distributing a controlled
substance
as of
the end of 2008.
Generally, the credit is allowed
for tuition and fees required for enrollment or attendance
at an
eligible
educational
institution. These tuition and fees generally should
have been paid in 2008 for an academic period beginning
in 2008 or in the first three (3) months of 2009.
The amount of Hope credit is the sum of:
- 100% of the first $1,200 of
qualified tuition and related expenses you paid for each
eligible
student, and
- 50%
of the next $1,200 of qualified tuition and related
expenses you paid for each eligible student.
The maximum amount of Hope
credit you can claim in 2008 is $1,800 times the number
of eligible students.
You can claim the full $1,800 for each eligible student.
However, the amount of your Hope credit is gradually reduced
if
your
modified
adjusted
gross
income
is between
$48,000 and $58,000 ($96,000 and $116,000 if you file
a joint
return).
You cannot claim a Hope credit if your modified adjusted
gross income is $58,000 or more ($116,000 or more
if you file a joint return).
For more information about the
Hope credit, call the Internal Revenue Service
at 1-800-TAX-1040 or
visit the following pages of the IRS website:
IRS
Publication 970 - Tax
Benefits for Higher Education (link opens new browser window) 
IRS
Taxpayer Help and Education – Frequently
Asked Tax Questions and Answers (link opens new browser
window)
This information is not intended as legal or tax advice.
Individuals should obtain IRS Publication 970, Tax Benefits
for Higher Education, or contact a tax advisor about personal
income tax situations.
