Firstly, The Hope Credit is a credit for tuition, fees, and materials for higher education. It allows up to $2,500 for a student enrolled at least half-time for one academic period. You can only claim this credit for the first 2 years of post-secondary education, and there are income restrictions that affect eligibility.
How do I qualify?
- You pay qualified education expenses of higher education
- You pay the education expenses for an eligible student
- The eligible student is yourself, your spouse, or a dependent for whom you claim an exemption on your tax return. For the 2010 tax year, the Hope Credit is not available.
However, if you paid out of pocket, the following expenses do not qualify.
- Room and board
- Medical expenses
- Student fees (not required for enrollment or attendance)
- Expenses paid for by tax-free educational assistance
- Expenses used for other tax deductions, credits, and education benefits
Our system determines if the Hope credit can be applied, or if it would be in your best interest to claim the Lifetime Learning Credit or the Tuition and Fees deduction.