Hope Tax Credit

Hope Tax Credit

A reduction of one's tax liability for one's education expenses for the first two years of college. That is, in order to be eligible for the credit, one must be enrolled at least half time in a degree or certificate granting program and must not have completed the first two years. (Additionally, one must be free of a felony drug conviction.) The credit may be applied to tuition, but generally not to room and board or similar expenses.
References in periodicals archive ?
It is important to note that state lottery-funded scholarships such as Georgia's HOPE program are different and separate from the federal Hope tax credit, now known as the American Opportunity Tax Credit.
I have also noted with interest recent proposals to broaden the HOPE tax credit program for Higher Education costs.
Programs include up to $1,500 for a Hope Tax Credit and up to $2,000 for the Lifetime Learning Credit.
The Hope Tax Credit provides up to a $1,800 tax credit per eligible student.
At the center of this plan is a College Opportunity Tax Credit, building on the existing Hope tax credit.
Forty-five percent of students claiming the Hope tax credit were able to claim the maximum amount, and 25% of all those claiming the Lifetime Learning tax credit claimed the maximum amount.
The Hope Tax Credit provides up to a $1,650 tax credit per eligible student each year.
5 billion under the HOPE tax credit, which allows a credit of up to $1,500 for tuition and fees during the first two years of postsecondary education;
The act provides a nonrefundable Hope tax credit for eligible higher education expenses including qualified tuition and related expenses, but not room, board or books.
The latter requirement was designed to curb fraud in cases where a student might claim eligibility for a HOPE tax credit but still get reimbursed for tuition from an employer or other organization.
By covering only tuition, the HOPE tax credit provides little assistance to its original target audience -- low- and middle-income students, many of whom attend two-year colleges, according to Reps.
GAO found that, in the 1999-2000 academic year, the Lifetime Learning and HOPE tax credits provided an estimated four in 10 undergraduate students with benefits that equaled a varying share of tuition and fees charged and title IV aid received.