Hope & Lifetime Tax Credit

Hope Scholarship Credit

A parent may claim a tax credit for 100% of the first $1,100 and 50% of the next $1,100, of a dependent child’s college tuition and mandatory fees, for a maximum $1,650 annual tax credit per child. It is available ONLY for 2 years per eligible student. In 2006, the credit is phased out for incomes between $45,000 and $55,000 (between $90,000 and $110,000 for married taxpayers filing jointly). The credit is allowed only for students who are attending a degree program at least half-time and who have not completed their first two years of academic study before the beginning of the taxable years.

Lifetime Learning Credit

A taxpayer may claim a tax credit up to $2,000 per return (i.e., 20% of up to $10,000 in combined tuition and mandatory fees for all students enrolled in eligible educational institutions). In 2006, the credit is phased out for incomes between $45,000 and $55,000 (between $90,000 and $110,000 for married taxpayers filing jointly). Claiming the Hope Scholarship credit means that you may not claim a Lifetime Learning credit for any of that student’s expenses in the same tax year.

Tax Filing Status
Household Adjusted Gross Income
Total Annal Cost of Colleges