Hope Credit

Hope credit tax rules

You can claim the Hope credit or Hope education tax credit for the first two years of postsecondary education. You cannot have expenses that were used to figure the Hope credit in any 2 earlier years. The student must also be:

• enrolled at least half time in a program that lead to a degree, certificate or other reorganized educational credential for at least one academic period beginning in that tax year.

• free of any felony conviction for possessing or distributing a controlled substance.

What is the maximum Hope credit amount?

The maximum Hope credit is $1,650 for each eligible student. In other words, the maximum credit you can claim under the Hope credit category is $1,650 times the number of eligible students. If the student's expenses are $1,100 or less, the credit is the amount of the expenses.

If the student's expenses are $2,200 or more the credit is $1,650. If the student's expenses are between $1,100 and $2,200 the credit is $1,100 plus one half of the expenses over $1,100.

What is the Hope credit for Gulf Opportunity Zone (GOZ)?

The Hope credit for GOZ students is calculated using 100% of the first $2,200 and 50% of the second $2,200. The maximum Hope credit for eligible GOZ student is $3,300.