Federal Education Tax Benefits
The Hope Scholarship
The Hope Scholarship is technically not a scholarship. It's a tax credit available to eligible students during their first two years of postsecondary education. The tax credit covers 100 percent of the first $1,200 of tuition and fees and 50 percent of the second $1,200 during the qualified period. To be eligible, a student must be enrolled at least half time in a degree or certificate program.
- More information about HOPE Scholarship legislation and other tax credits
- Information about the IRS “Form 1098-T”
Lifetime Learning Credit
Adults returning to college and students attending less than half time are eligible for a new lifetime learning tax credit. The credit is worth 20 percent of the first $10,000 of tuition and fees for the year 2009.
Eligibility is determined at the same income levels as the Hope Scholarship. Single filers over $60,000 in income and joint filers over $120,000 are ineligible. Taxpayers filing married and separate are not eligible for the Lifetime Learning tax credit.
The Lifetime Learning Credit may not be claimed during the same year as the Hope Scholarship Credit.
