Hope Credit Jonesboro GA

Looking for a way to make paying for college a little bit easier? The Hope Credit may be able to provide the financial relief you're seeking-- parents or independent students can reduce their tax bills by up to $1,650 per year if they qualify. The advantage of the Hope Credit is that it allows you to take a very generous percentage of your expenses as a credit against your tax bill, but eligibility requirements are quite stringent.

Hope Credit in a Nutshell
Every dollar you claim with the Hope Credit offsets your tax bill by a dollar--as opposed to a tax deduction which merely reduces your taxable income. However, if the credit exceeds your tax liability you can't receive the excess as a refund--if you don't earn enough to pay taxes you can't take advantage of the Hope Credit.

How much credit?
To calculate the credit, take 100% of the first $1,100 of qualified education expenses paid per eligible student, and 50% of the next $1,100 (to a maximum of $1,650 per student in 2006). The Hope Credit is subject to phase-out at certain income limits and becomes completely unavailable when your Modified Adjusted Gross Income (MAGI) exceeds $55,000 ($110,000 for joint return filing).

Who is eligible for the Hope Credit?
If you are responsible for footing the college expense bill, you can claim the Hope Credit on your tax return if you, your spouse, or your dependent is in the first two years of college and has enrolled at least half-time at an eligible education institution. Children who are no longer dependents should claim any education credits their own tax return.
When filing for the credit note the following restrictions:

 Married parents or married independent students must file their taxes jointly with
their spouses to claim the Hope Credit.

 If you're a student listed as dependent on anyone else's tax return, you cannot file
for the Hope Credit individually; your parents must claim the credit on their own tax
return.

 You can claim the Hope Credit or the Lifetime Learning Credit for an eligible student
in a tax year (not both). You cannot claim the credit for expenses you have deducted
elsewhere on your tax return, or for expenses that were paid by someone else (such as a
scholarship fund).

 Felonies or drug convictions on the student's record will disqualify him/her from Hope
Credit eligibility.

What are these 'qualified education expenses'?
Qualified education expenses include tuition fees and other mandatory costs (for example registration and student-activity fees). Books, supplies, and equipment are not qualified education expenses unless required in order for the student to enroll in or attend the institution. Room and board, insurance, student health