Bursar's Office

Taxpayer Relief Act of 1997 - The Hope Tax Credit

The Hope Tax Credit is a non-refundable tax credit, not a scholarship. This credit may be claimed for the qualified tuition and related expenses of the taxpayer, the spouse, and/or dependents if the student is:

Enrolled at least half time in a program leading to a recognized degree or certification

Enrolled in the first two years of post-secondary study

Note: Qualified Expenses are tuition and related fees, but not books, room, board, insurance, transportation, or other similar personal living or family expenses.

Calculation of Benefits: The taxpayer may claim 100% of the first $1,000 and 50% of the next $1,000 of qualified expenses, with a maximum of $1,650 per student.

Income Qualifications: The amount a taxpayer can claim is gradually reduced when their modified adjusted gross income is between $41,000 and $55,000 ($82,000 - $110,000 for married taxpayers filing jointly). Taxpayers with a modified adjusted gross income of $55,000 or more ($110,000 or more for married taxpayers filing jointly) are not eligible to claim these tax credits.

Limitations: A taxpayer can claim only "out-of-pocket" expenses. Qualified expenses paid with grants, tax-free scholarships, tax-free distribution from an Education IRA, or tax-free employer-provided educational assistance cannot be used in calculating this credit.

Credit cannot be claimed for both the Hope Tax Credit and the Lifetime Learning Tax Credit in the same tax year.





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