i am filing my federal taxes and i have come to the tuiton part.. what is the hope credit?!
2007-02-11 15:30:51 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The Hope Credit is for the first two years or college. After that, use the Lifetime Learning Credit. Ask your tax person for details so you claim the right one.
2007-02-11 15:35:03 · answer #1 · answered by amandafofanda66 6 · 0⤊ 0⤋
The Hope Credit is only of value of you have actually paid any tax before deducting credits and withholding. If that isn't you, stop here. Also, if your parents paid your expenses (or took out a student loan) stop here.
If you can claim, you will get a deduction of your tax bill of $1,100 for the first $1,100 of expenses on the 1098. you will get 50% of the next $1,100 off your tax bill too.
If you got a scholarship, you must take that into account. See Pub. 970, linked below. If you need to claim, file form 8863 with your return.
2007-02-12 07:37:01 · answer #2 · answered by skip 6 · 0⤊ 0⤋
It's important to take the Hope credit first, then the other since you can only use the Hope Credit the first 2 years (it's also more money)
2007-02-11 23:48:23 · answer #3 · answered by Scott K 7 · 0⤊ 0⤋
The Hope Education Credit is a credit for continuing higher education expenses. If you are in your first 2 years of school, you will qualify for the Hope Credit. If you have qualified education expenses past your first two years of education you'll get the Lifetime learning credit instead of the Hope Education Credit.
You should have received a statement from your school telling you how much you paid in qualified education expenses.
2007-02-11 23:36:27 · answer #4 · answered by Brad S 2 · 1⤊ 0⤋