Definitions for "Hope Scholarship Credit"
The Hope Scholarship is a tax credit, not a scholarship. The credit applies to students who are: in their first two years of post-secondary education (normally the freshman and sophomore year in college), is enrolled in a degree-seeking program, and is enrolled at least half-time during one academic period (semester or summer term at UH) during the 2002 calendar year. The credit is applicable for expenses paid in 2002. Taxpayers may claim a maximum credit up to $1,500, but the amount of the credit is phased out at certain income levels. Note: If a student does not meet the necessary requirements to qualify for the Hope credit, they may be able to take the Lifetime Learning credit for part or all of that student's qualified expenses instead. Note: The Hope credit may be claimed for no more than 2 tax years for each student. See IRS Notice 97-60 for more details. I - J K - L
An education tax credit that can be claimed only for qualified tuition and expenses that have been incurred at an eligible institution and are not covered by other assistance. Expenses not part of the degree program are excluded (room, board, books, insurance and activity fees). This credit is available only for the first two years of post-secondary education, during which the student is enrolled at least half time in a degree or certificate program. To receive the credit a taxpayer's adjusted gross income must not exceed a specified dollar amount.
This credit may be elected only for a student's first two years of post-secondary education. The HOPE credit equals 100 percent of the first $1,000 plus 50 percent of the second $1,000 of qualified education expenses paid during a taxable year. Qualified education expenses include tuition and fees, but not room and board or books. The credit is phased out for joint filers with modified adjusted gross income (AGI) between $90,000 and $110,000 in 2006 ($45,000 and $55,000 for single filers). The modified adjusted gross income amounts are adjusted annually for inflation.