More Information about the Hope Credit
A student will not be able to qualify for the Hope Credit and American Opportunity Credit both since they are the same credit. Also, a student will not qualify for the Lifetime Learning Credit and the Hope Credit in the same year.
The Hope Credit is limited to the first 2 years of post-secondary education. The student must be enrolled in school at least part-time. If a student is convicted of a drug offense or felony the credit will be lost. Also, if the student’s income is over $47,000 the credit is gradually reduced in its amount, and totally phased out once the taxpayer’s income is over $57,000. For joint filers, this number is increased to $94,000 and $114,000.
“Qualifying expenses” are a bit tricky and they do not include expenditures for room and board, insurance, and athletic fees. The IRS Says qualified expenses are: “the tuition and fees paid at most colleges and universities for the enrollment or attendance of the taxpayer, the taxpayer’s spouse, or any dependent of the taxpayer.
The IRS also says, “Only certain expenses for course-related books, supplies, and equipment qualify.”
Another important detail to note is that a student can not claim the Hope Credit if he or she is a dependent of someone else. For instance, if the student has a parent or guardian that lists him or her in the “exemptions” section of their tax return, the student his or herself can not qualify for the credit. However, there is a chance that the student’s guardian can qualify for the credit as long as the student meets the requirements listed above.
by 
Erich J. Ruth
Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.
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