Hope Credit

AAA

DEFINITION of 'Hope Credit'

A nonrefundable education tax credit that can be claimed for students that have yet to complete two years of post secondary education. The Hope Credit may be taken for tuition and fees, but not room and board or books. The student incurring the expenses can be either the taxpayer, spouse or dependent. The Hope Credit is for 2008.

INVESTOPEDIA EXPLAINS 'Hope Credit'

The Hope Credit is one of two nonrefundable education credits available for taxpayers. The other credit is the Lifetime Learning Credit, which can be claimed after the Hope Credit has been exhausted. For example, in 2008 the Hope credit limited of $1,800 could be claimed separately for each student or dependent per year, but the limit applied to each. The credits are not available to taxpayers whose modified adjusted gross income exceeds a certain amount.

RELATED TERMS
  1. American Opportunity Tax Credit

    A tax credit that enabled more student and parents to pay for ...
  2. Education Credit

    A type of tax credit available to students of a post-secondary ...
  3. Lifetime Learning Credit

    A provision of the U.S. federal income tax code that lets parents ...
  4. Federal Income Tax

    A tax levied by the United States Internal Revenue Service (IRS) ...
  5. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  6. Federal Tax Brackets

    Income tax groupings specified by the Internal Revenue Service ...
RELATED FAQS
  1. How can I use a child tax credit?

    You may be able to reduce the amount of taxes you owe by up to $4,000, by claiming the child tax credit of up to $1,000 ... Read Full Answer >>
  2. How can I tell if I'm eligible for an EITC?

    According to the IRS, over 22 million taxpayers received $41.4 billion dollars in earned income tax credit (EITC) for tax ... Read Full Answer >>
Related Articles
  1. Savings

    Saver's Tax Credit: A Retirement Savings Incentive

    Here's another reason to put money toward your retirement nest egg.
  2. Taxes

    Clearing Up Tax Confusion For College Savings Accounts

    Put your kids through school without being hounded by the tax man.
  3. Taxes

    5 Tax Credits You Shouldn't Miss

    If you're not taking advantage of these deductions, you could be missing out on tax savings.
  4. Taxes

    Student Tax Breaks

    Education bills may not be as stressful as you think - these student tax breaks can help!
  5. Taxes

    Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.
  6. Taxes

    The First Thing You Should Do With Your Tax Refund

    Nobody likes to pay taxes, but everyone loves to get a tax refund. When the check arrives in the mail, it's hard to resist spending it on some indulgence.
  7. Taxes

    How Does An IRS Audit Work?

    It doesn't automatically mean an IRS agent will be ringing your doorbell. Here are the different types of IRS audits and how to handle them.
  8. Taxes

    Made A Mistake On Your Tax Return? Don't Panic

    You can always file an amended return. But the sooner you do it, the better.
  9. Taxes

    Business Taxes: Not Paying More Than You Have To

    If you're a small business owner, note these potential tax deductibles so that you don't pay taxes that could have been extra revenue in your account.
  10. Taxes

    How To Arrange An Installment Agreement For Taxes

    Not enough cash on hand for your April 15th tax bill? No need to panic. Here's what to do.

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center