Students who paid by cash, check, credit card or student loans may be eligible to receive a tax credit in that year. The tax credit is for tuition less any financial aid grants, scholarships or tuition reimbursement received. Questions on either program should be directed to your tax advisor or the IRS.
Hope Scholarship Tax Credit
* Students must be enrolled for at least six credits per semester.
* Covers up to $1500 per year, 100% of the first $1000 in tuition and "qualified fees" and 50% of the second $1000 in tuition and "qualified fees" during the first two years of college.
* Amount of credit depends on family's income.
Lifetime Learning Tax Credit
* Covers up to 20% of the first $5000 in tuition for a maximum annual tax credit of $1000. No limit on amount of years that you can claim credit. For the 2003 tax year, it will increase to 20% of $10,000 for a maximum credit of $2000.
* Student could be eligible for the tax credit when taking one or more undergraduate or
graduate courses.
* Amount of credit depends on family's income.
