<topic sku="core" tNum="289589" author="sallyh" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about the Hope credit</title><category>tax</category><klink type="prcdr">Tell me about the Hope credit</klink></index>
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<p>If you, your spouse, or your dependents enroll in the first two years of higher education, you may be able to take advantage of the Hope credit.</p>
<p>You may be able to claim a Hope credit of up to $1,500 for each eligible student<mdash/>100% of the first $1,000 of qualified higher education expenses and 50% of the second $1,000. The Hope credit is allowed for the first two years of postsecondary education. A student must be enrolled at least half-time at an eligible educational institution in a program leading to a degree, certificate, or other recognized credential. The student also must not have been convicted of a felony for possession or distribution of a controlled substance.</p>
<p>All of the following conditions must be true for you to qualify for the Hope credit:</p>
<ul>
<li>You have qualified tuition and related expenses.</li>
<li>The expenses are paid on behalf of you, your spouse, or your dependents. </li>
<li>You do not deduct the expenses elsewhere, and you are not reimbursed for them. </li>
<li>You are not using the Married Filing Separately filing status.
The education expenses are paid during 1999, and they are for academic periods beginning during 1999 or the first three months of 2000. </li>
<li>A student must be enrolled at least half-time at an eligible educational institution in a program leading to a degree, certificate, or other recognized credential. </li>
<li>The student must not have been convicted of a felony for possession or distribution of a controlled substance.</li>
<li>Your modified adjusted gross income is below $50,000 ($100,000, if you are using the Married Filing Jointly filing status). You may qualify for a lesser credit if your modified adjusted gross income is between $40,000 and $50,000 ($80,000 and $100,000, if you are using the Married Filing Jointly filing status). </li>
</ul>
<p> For more information, see IRS Publication 970, Tax Benefits for Higher Education, on the <alink type="xtnl" href="http://www.irs.gov">IRS Web site</alink>.</p>
