Hope Learning Credit

Have a love of learning?

The Hope Learning Credit another way to reduce your taxes while paying for college. You may be able to claim a federal individual income Hope Tax Credit of up to $1,650 for qualified tuition and related expenses for each eligible student. The Hope Tax Credit reduces the amount of federal individual income taxes you may have to pay.

 

Income Limits

The amount of your Hope Tax Credit is phased out (gradually reduced) if your modified adjusted gross income is between:

  • $45,000 and $55,000 if you file as a single taxpayer, or
  • $90,000 and $110,000 if you file a joint tax return.

You cannot claim a Hope Tax Credit if your modified gross income is $55,000 or more ($110,000 or more if you file a joint return).

 

Eligibility

You can claim the Hope Tax Credit for the first two years of an eligible student's postsecondary education when the student is enrolled at least half time in a program that leads to a degree, certificate, or other recognized educational credential for one academic period. Generally, you can claim the Hope Tax Credit if you pay qualified tuition and related higher education expenses for an eligible student who is either yourself, your spouse, or a dependent for whom you claim an exemption on your federal tax return. You cannot claim the Hope Tax Credit if your tax filing status is married filing separate returns.

 

Qualified Expenses

Qualified tuition and related expenses are tuition and fees required for enrollment or attendance at an eligible education institution. You must reduce the qualified expenses by the amount of any tax-free educational assistance you received.

 

Eligible Educational Institutions

Eligible educational institutions are any college, university, vocational school, or other postsecondary educational institution eligible to participate in student aid programs administered by the United States Department of Education.

 

Compatibility with Other Tax Benefits for Higher Education

You may be able to claim a Hope Tax Credit in the same year in which you received a distribution from either a Coverdell Education Savings Account (ESA) or a Qualified Tuition Program (QTP) - 529 Plans, but you cannot use expenses paid with a distribution from either a Coverdell ESA or a QTP as the basis for the Hope Tax Credit. You cannot claim the Hope and Lifetime Learning Tax Credits for the same student in the same year.

 

Tax Form

To calculate your Hope tax credit, use Internal Revenue Service Form 8863.

For additional information on the Hope Tax Credit, see Internal Revenue Service Publication 970.