Hope Credit Information

The Hope Credit, or Hope Education Tax Credit, was established in January of 1998. It can help offset the cost of higher education by reducing the amount of your taxable income. It allows taxpayers who are eligible to receive the credit to claim up to $1,800 in approved educational expenses for each student who is enrolled in school. The tax form used for the Hope Credit is IRS Form 8863.
  1. Eligibility

    • According to the Internal Revenue Service, taxpayers who claim the Hope Credit must be the one paying for qualifying higher education expenses and the education being paid for must be for a qualified student.
      The IRS considers a qualifying student as the taxpayer, the taxpayer's spouse or a dependent who can be claimed on the taxpayer's federal income tax return.

    Ineligibility

    • According to the IRS, among the reasons taxpayers can be ineligible to claim the Hope Credit are if their tax filing status is married, filing separately; if they are listed as a dependent on someone else's federal tax return or if the taxpayer or spouse was a non-resident alien during any part of the tax year and did not choose to be treated as a resident alien for tax purposes.
      The Hope Credit also can't be claimed if the Lifetime Learning Credit is being claimed for the same student during the same tax year.

    Qualifying student

    • The IRS defines a qualifying student for the purposes of the Hope Credit as an individual who has not completed the first two years of post secondary education.

    Felons

    • Students who have been convicted of a felony involving a controlled substance in either federal or state court cannot apply for the Hope Credit, according to the IRS.

    Qualifying educational institutions

    • To qualify for the Hope Credit, students must attend a college, university, vocational school or other post secondary school that is eligible to take part in the Department of Education's student aid program. Students should check with their school's financial aid office to see if the institution takes part in the Department of Education's student aid program.

Learnify Hub © www.0685.com All Rights Reserved