Student Accounts: Hope Tax Credit
The eligibility requirements for the Hope Scholarship Credit are
as follows:
- The student must have a high school diploma or its equivalent.
- The student must be enrolled at least halftime in a program
leading to a degree or certificate during at least one semester
during the tax year.
- The student must be enrolled in one of their first two (2) years
of post-secondary education at an eligible institution.
- The student must be free of any conviction for a Federal or
State felony offense due to the possession or distribution of
a controlled substance.
Additional Hope Scholarship Tax Credit information:
- The Hope Scholarship Tax Credit covers qualified costs, which
includes tuition, college fee and capital projects, but specifically
excludes books, room and board, nonacademic fees (i.e. student
activity fee, MASSPIRG, Health Insurance) and expenses involving
sports, games or hobbies unless they are part of the student's
degree program.
- The credit is gradually phased out for taxpayers that have modified
adjusted gross income between $40,000 and $50,000 ($80,000 to
$100,000 for married taxpayers filing jointly).
- Scholarships and grant aid do not count as qualified tuition
and related expenses paid by the taxpayer. Generally only out-of-pocket
expenses count, however, this includes gifts, bequests, and inheritances
as qualified tuition and expenses paid by the taxpayer.
- Taxpayers may first claim the Hope Scholarship Credit on their
1998 tax returns filed in 1999.
What FSC expenses qualify?
"Qualified Expenses" are costs for instruction required for a degree.
These include tuition, college fee and capital projects. Room Charges,
Meal Plans, and Student Activity Fee are NOT eligible.
The above information is for informational
purposes only and subject to change.
For more information visit: Hope Home Page - U.S. Department
of Education http://www.ed.gov/offices/OPE/PPI/HOPE/
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