The Hope Credit

The Internal Revenue Service offers help toThere is an expanded definition of qualified education
taxpayers paying for tuitions. One of these ways isexpenses for Gulf Opportunity Zone students. See
the Hope Credit. You are allowed to take a credit ofyou tax preparer if this applies to you.
up to $1,650 per eligible student. The credit is availableExpenses that do not qualify are costs of insurance,
only until the first two years of post education aremedical expenses, student health fees, room and
completed and is only available for two years perboard, transportation or similar personal, living or family
eligible student. The student must be enrolled in anexpenses. Also not generally included are expenses
undergraduate degree program or other recognizedthat relate to any classes or other education that
education program and must be enrolled at least halfinvolves sports, games or hobbies or any non-credited
time for at least one academic period beginning duringcourse unless it is part of the student's degree
the year. Also the student can not have any felonyprogram.
drug conviction on their record.You cannot claim this credit if your filing status is
You are eligible for the credit if you pay the qualifiedmarried filing separately, you are listed as a dependent
education expenses of higher education, you pay theon another's tax return, your modified adjusted gross
education expenses for an eligible student and theincome is $55,000 or more or if married filing jointly
eligible student is either yourself, your spouse or ayour modified adjusted gross income is $110,00 or
dependent for whom you are eligible to claim as anmore, you or your spouse were a nonresident alien for
exemption on your tax return.any part of the filing year and the nonresident alien did
Eligible expenses include tuition, and certain relatednot elect to be treated as a resident alien for tax
expenses such as student-activity fees, expenses forpurposes and if you have claimed the lifetime learning
course related books, supplies and equipment only ifcredit or a tuition and fees deduction for the same
the fees and expenses are paid to the institution as astudent in 2006.
condition of enrollment.