Tax help - Hope Credit

Mercy · 02-16-2008

Can someone explain the Hope Credit in simple terms. I've read about it, but it isn't getting thru my head. Is this for money actually paid out, or does it include loans taken for college?

Sorry, I'm just not getting it

CaroleLB · 02-16-2008

Quote:

Originally Posted by Mercy

Can someone explain the Hope Credit in simple terms. I've read about it, but it isn't getting thru my head. Is this for money actually paid out, or does it include loans taken for college?

Sorry, I'm just not getting it

From what little I understand it is what you paid. The formula execeeds my bare minimum math comprehension.

All I remember is that I received the form, for my daughter, from the school.

jtm1631 · 02-16-2008

I believe it has to be money paid out, e.g. expenses incurred. I don't believe a loan taken out to pay for college would qualify.

There are IRS tax help lines that you could call to make sure.

MN Annie · 02-16-2008

This IRS page might answer your question
Frequently Asked Questions - 7.4 Hope & Life Time Learning Educational Credits

As I understand it, qualifying expenses are eligible regardless of whether you paid in cash or with a repayable loan.

It's been a few years since I'd had to complete these and FAFSA forms

xunshyne · 02-16-2008

Quote:

Originally Posted by Mercy

Can someone explain the Hope Credit in simple terms. I've read about it, but it isn't getting thru my head. Is this for money actually paid out, or does it include loans taken for college?

Sorry, I'm just not getting it

I claimed the credit and I had only paid with loans. Now that I'm done with school, I am paying off the loans. I do not get to claim the Hope credit, but I do get to claim the interest paid on my student loan.

attaboy · 02-16-2008

It includes ANY money paid for tuition to a qualifying institution. Best I remember, cash, check, credit card, or loan (I dont remember what it said about scholarship money). My daughters college sent us an IRS form 1098-T. Box 1 is for "Payments received for qualified tuition and related expenses."

thisoldhippy · 03-09-2008

only available for the first 2 years of college......afterwards you can get the lifetime credit

FrankRN · 03-09-2008

I thought you were supposed to take this credit and "HOPE" you don't get audited. No??

02-16-2008	#1 (permalink)
Mercy reposado Join Date: Aug 2006 Location: Physically Maryland/Mentally the Beach Posts: 1,498	Tax help - Hope Credit Can someone explain the Hope Credit in simple terms. I've read about it, but it isn't getting thru my head. Is this for money actually paid out, or does it include loans taken for college? Sorry, I'm just not getting it

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02-16-2008	#3 (permalink)
jtm1631 añejo Join Date: Mar 2004 Location: Chicagoland Posts: 2,331	I believe it has to be money paid out, e.g. expenses incurred. I don't believe a loan taken out to pay for college would qualify. There are IRS tax help lines that you could call to make sure.

02-16-2008	#4 (permalink)
MN Annie reposado Join Date: Oct 2004 Posts: 1,268	This IRS page might answer your question Frequently Asked Questions - 7.4 Hope & Life Time Learning Educational Credits As I understand it, qualifying expenses are eligible regardless of whether you paid in cash or with a repayable loan. It's been a few years since I'd had to complete these and FAFSA forms

02-16-2008	#6 (permalink)
attaboy beachaholic Join Date: Sep 2005 Location: Fort Worth, Texas Posts: 486	It includes ANY money paid for tuition to a qualifying institution. Best I remember, cash, check, credit card, or loan (I dont remember what it said about scholarship money). My daughters college sent us an IRS form 1098-T. Box 1 is for "Payments received for qualified tuition and related expenses."

03-09-2008	#7 (permalink)
thisoldhippy beachaholic Join Date: Dec 2005 Location: North Dakota,U.S.A. Posts: 364	only available for the first 2 years of college......afterwards you can get the lifetime credit

03-09-2008	#8 (permalink)
FrankRN añejo Join Date: Jan 2004 Location: Boston, MA USA Posts: 1,891	I thought you were supposed to take this credit and "HOPE" you don't get audited. No??

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