Carroll Community College

Hope Scholarship and Tax Breaks Cut College Costs

The Hope Scholarship, Lifetime Learning Credit and the American Opportunity Credit helps make your education at Carroll more accessible.

The Hope Scholarship legislation allows eligible students pursuing the first two years of postsecondary education to receive a maximum tax credit of $1,800 (100 percent of the first $1,200 and 50 percent of the second $1,200 for tuition and fees) on their federal income tax return. Students must be enrolled at least half-time (six credit hours) in a degree, certificate or other program leading to a recognized education credential.

Lifetime Learning Credit allows you to take a tax credit if you do not qualify for the Hope Scholarship. You may take a tax credit of 20 percent for qualified expenses paid to a maximum of $2,000 ($10,000 x .20).

The American Opportunity Credit is available for 2009 and 2010, which allows a maximum of $2,500 (100 percent of the first $2,000 and 25 percent of the next $2,000). The credit is available for the first four years of postsecondary education and 40 percent of the credit (up to $1,000) is refundable for many taxpayers.

FAQ's for Hope Scholarship legislation and other tax credits

Comparison chart of education credits