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Who Qualifies as an Eligible Students?

• Freshman or sophomore students, who are enrolled at least half-time for at least one academic period that begins during the taxable year, in a program leading to a degree, certificate, or other recognized educational credential.

• Eligible dependent students  must be claimed as a dependent on the taxpayer's tax return.

• If the family has multiple students that meet the requirements, then multiple HOPE Scholarship Credits may be claimed.

What are Qualified Expenses?

• The amount of tuition and fees paid, less financial aid, scholarships and grants paid for an eligible student during a tax year.

• A family may claim a tax credit up to $1,500 per tax year per eligible student for tuition and fees paid to an eligible institution such as PCC.

• The maximum tax credit is $1,500. This is calculated as 100 percent of the first $1,000 of eligible expenses and 50 percent of the next $1,000 of eligible expenses.

Hope Scholarship Tax Credit Provisions

• The full tax credit is allowed for taxpayers' with adjusted gross income up to $40,000 ($80,000 for married taxpayers filing jointly).

• The amount a taxpayer may clam is gradually reduced for taxpayers who have adjusted  gross income between $40,000 ($80,000 for married taxpayers filing jointly) and $50,000 ($100,000 for married taxpayers filing jointly).

• A family must have a tax liability of at least the amount of the credit they take.

   

 Understanding how these tax credits will benefit you requires specific knowledge about your individual tax circumstance. Anyone seeking to take advantage of these tax credits should seek qualified counsel in order to determine how they might benefit from these tax credits.