Federal Hope Credit

A family may claim a tax credit up to $1,500 for each eligible dependent for up to two tax years (100% of the first $1,000 and 50% of the second $1,000 paid for qualified expenses). The Hope credit is available only until each student's first two years of postsecondary education are complete.

A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction which reduces the amount of income subject to tax, a credit directly reduces the tax itself. The Hope credit you are allowed may be limited by the amount of your income and the amount of your tax. The Hope credit is a nonrefundable credit. This means that it can reduce your tax to zero, but if the credit is more than your tax the excess will not be refunded to you.

If you are eligible to claim the Hope credit and you are also eligible to claim the lifetime learning credit for the same student in the same year, you can choose to claim either credit, but not both. For 2005, if the total qualified education expenses for a student are less than $7,500, it will generally be to your benefit to claim the Hope credit.

pdf Click here for more information about the Federal Hope Credit.

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Create an Account Log On My 411 Paying for College Repayment Guide Scholarships & Grants Savings Programs Tax Savings Federal Hope Credit Lifetime Learning Credit Student Loan Interest Deduction Employer Provided Education Assistance Higher Education Expense Deduction Loan Programs Tools & Calculators Publications & Forms Ask an Expert	Federal Hope Credit A family may claim a tax credit up to $1,500 for each eligible dependent for up to two tax years (100% of the first $1,000 and 50% of the second $1,000 paid for qualified expenses). The Hope credit is available only until each student's first two years of postsecondary education are complete. A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction which reduces the amount of income subject to tax, a credit directly reduces the tax itself. The Hope credit you are allowed may be limited by the amount of your income and the amount of your tax. The Hope credit is a nonrefundable credit. This means that it can reduce your tax to zero, but if the credit is more than your tax the excess will not be refunded to you. If you are eligible to claim the Hope credit and you are also eligible to claim the lifetime learning credit for the same student in the same year, you can choose to claim either credit, but not both. For 2005, if the total qualified education expenses for a student are less than $7,500, it will generally be to your benefit to claim the Hope credit. Click here for more information about the Federal Hope Credit.
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GAcollege411 Partners Copyright © XAP Corporation. All rights reserved. XAP and Mentor are registered trademarks of XAP Corporation. Reg. U.S. Pat. & TM Off. Use of this website constitutes acceptance of the XAP Terms of Use and Privacy Policy .