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REGARDING THE TAXPAYER RELIEF ACT OF 1997 *This information is not intended as legal or tax advice. Individuals should obtain IRS Publication 970, Tax Benefits for Higher Education or contact a tax practitioner about personal income tax situations. 1. Who may claim the Hope Scholarship Credit? An individual paying qualified tuition and related expenses at a post-secondary educational institution may claim the credit, provided the student whose expenses are being paid and the institution meet certain eligibility requirements. In general, a student is eligible for the Hope Scholarship Credit if the student is enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential for at least one academic period (e.g., semester, trimester, quarter) beginning during the calendar year, and is enrolled in one of the first two years of post-secondary education. Nonresident aliens generally are not eligible to claim the Hope Scholarship Credit.2. Who may claim the Lifetime Learning Credit? An individual paying qualified tuition and related expenses at a post-secondary educational institution may claim the credit, provided the institution is an eligible educational institution. Nonresident aliens generally are not eligible to claim the Lifetime Learning Credit. 3. What does the term qualified tuition and related expenses mean for purposes of the Hope Scholarship Credit and the Lifetime Learning Credit? Qualified tuition and related expenses are tuition and fees required for enrollment or attendance at an eligible educational institution. Qualified expenses do not include books, room and board, athletics (unless the course is part of the student’s degree program), insurance, equipment, transportation, or other similar personal living, or family expenses. 4. Are qualified tuition and related expenses for graduate-level education eligible for the Hope Scholarship Credit or the Lifetime Learning Credit?Hope Scholarship Credit: No. Lifetime Learning Credit: Yes. 5. May a parent or student claim a credit for tuition paid in advance of when the academic period begins? Generally, the credit is available only for payments of qualified tuition and related expenses that cover an academic period beginning in the same calendar year as the payment is made. (An academic period begins on the first day of classes, and does not include periods of orientation, counseling, or vacation.) An exception, however, allows a parent or student to claim a credit for payments of qualified tuition and related expenses made during the calendar year to cover an academic period that begins in January, February or March of the following taxable year. Hope Scholarship Credit: Because the Hope Scholarship Credit does not apply to expenses paid before January 1, 1998, this exception does not apply to tuition paid in 1997 to cover academic periods beginning in 1998. Lifetime Learning Credit: Because the Lifetime Learning Credit does not apply to expenses paid before July 1, 1998, this exception does not apply to tuition paid before that date to cover academic periods beginning before or after that date.More information is available from the IRS >
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