Hope Credit
Taken from IRS Pub 970 Chapter 3 Overview of Education Tax Benefits for Tax Year 2009
| Maximum credit | Up to $1,800 ($3,600 if a student in a Midwestern disaster area) credit per eligible student | ||
| Additional requirement for 2009 | At least one eligible student must be attending an eligible educational institution in a Midwestern disaster area | ||
| Limit on modified adjusted gross income (MAGI) | $120,000 if married filling jointly; $60,000 if single, head of household, or qualifying widow(er) |
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| Refundable or nonrefundable | Nonrefundable—credit limited to the amount of tax you must pay on your taxable income | ||
| Number of years of postsecondary education | Available ONLY for the first 2 years of postsecondary education | ||
| Number of tax years credit available | Available ONLY for 2 tax years per eligible student | ||
| Type of degree required | Student must be pursuing an undergraduate degree or other recognized education credential | ||
| Number of courses | Student must be enrolled at least half time for at least one academic period that begins during the tax year | ||
| Felony drug conviction | No felony drug convictions on student’s records | ||
| Qualified expenses | Tuition and fees required for enrollment (including amounts required to be paid to the institution for course-related books, supplies, and equipment). Additional expenses allowed for students in Midwestern disaster areas. | ||
| Payments for academic periods | Payments made in 2009 for academic periods beginning in 2009 and in the first 3 months of 2010 |
Who Can Claim the Credit
Generally, you can claim the Hope credit if all four of the following requirements are met.
- You pay qualified education expenses of higher education.
- You pay the education expenses for an eligible student.
- The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.
