Hope and Lifetime Learning Tax Credit

Hope Tax Credit

The Hope tax credit provides a maximum of $1,500 tax credit for tuition and fees paid each year for the first two years of college for qualified taxpayers. This tax credit applys to independent students, dependent students, and parent(s) of dependent students.

Taxpayers may be eligible to claim a Hope tax credit against their federal income taxes. The Hope tax credit may be claimed for the qualified tuition and fees expense of each student in the taxpayer's family (i.e. the taxpayer, the taxpayer's spouse, or an eligible dependent).

The amount that may be claimed as a tax credit is generally equal to: (1) 100% of the first $1,000 of qualified tuition and fees expense for each student, plus (2) 50% of the next $1,000 of the student's expenses.

The maximum credit a taxpayer may claim is $1,500 for each student who meets the following criteria:

1. the student is enrolled in the first two years of post-secondary education
2. the student is enrolled in a program leading to a degree or certificate
3. the student is enrolled at least half-time

Learn more at the IRS website.

Lifetime Learning Tax Credit

Lifetime Learning Credit is for:

• college Juniors, Seniors, Graduate students
• working Americans pursuing lifelong learning to upgrade their skills
• those beyond the first two years of college
• those taking classes part-time to improve or upgrade their job skills

Families can receive a 20% tax credit for the first $5,000 of tuition and fees through 2002 and for the first $10,000 thereafter. The credit is available for net tuition and fees (less grant aid) paid for post-secondary enrollment after June 30, 1998. The credit is available on a per-taxpayer (family) basis, and is phased out at the same income levels as the Hope tax credit.

Learn more at the IRS website.

Financial Aid Office
Hawkeye Center - Main Campus
319-296-4020 or 1-800-670-4769 ext.4020
finaid@hawkeyecollege.edu