The following information was prepared to inform students about the
benefits and requirements for the Hope Scholarship. It is based upon our understanding of
the provisions contained in the Tax Relief Act of 1997 and should not be considered an
official document. Students should rely upon the advice of their tax accountant or the
Internal Revenue Services as appropriate.
The HOPE "Scholarship" is not technically a
"scholarship." It is a non-refundable tax credit that could reimburse eligible
students for up to 100 percent of the first $1,000 of tuition and fees and 50 percent of
the second $1,000 during the qualified period.
To be eligible, a student must be enrolled in a degree, certificate,
or other program leading to a recognized education credential. The student must be
enrolled at least half time (six credit hours).
The HOPE tax credit applies to expenses paid starting January 1,
1998 for education provided in academic periods beginning after that date.
The tax credit is available for the first two years of postsecondary
education.
Only tuition and enrollment fees - not books, housing costs, or
other living expenses.
The amount of tuition and fees covered by the HOPE tax credit is
reduced by certain grant scholarship aid received.
Yes. Students convicted of a felony related to the possession or
distribution of a controlled substance such as heroin or marijuana are not eligible. In
addition, individual filers who earn income in excess of $50,000 are ineligible, as are
joint tax filers whose income exceeds $100,000.
Eligible individuals will claim the credit when they file their 1999
federal income tax forms in 2000.
