Tax credit for college tuition and Hope Scholarship funds?
Question:
Answer:
If you have a scholarship that covers all of your eligible expenses, then you wouldn't be eligible for a tax credit since that's only for what you actually pay. But if your scholarship doesn't cover all the eligible expenses, you can still claim a tax credit for the eligible expenses that you have to pay over and above the scholarship. You don't get a tax credit for the amounts that your scholarship pays.
Good luck.
There's the Hope and the Lifetime Learning credit. Your freshman and sophomore year you claim the Hope. Junior and senior, the Lifetime. You cannot claim these at the same time. Once you get to the Lifetime, the amount goes up. Talk to your tax preparer, they should know what to do with them.
More Questions & Answers...