Hope Credit

[Super Mom]

I have a person with Educational Expenses, the boy did technically finish his second year before 2008 as the documentation reads. I'm thinking the IRS told me last year that they could still claim the credit if they never have (they have 2 years). But experience has taught me to NEVER go by what the IRS says on the phone, only the documentation. So I assume he does not qualify for the hope credit even though he's never claimed it before. Would anyone out there disagree?

Thanks for the help!!

[KBTS]

Hope Credit

You are correct.....the Hope Credit is only available for the first two years of post-secondary education; so if the child did complete his second year prior to 2008, they cannot claim the Hope. Be sure to verify his second year was completed before 2008 though, because the first two years in school often span 3 tax years. For example, student attends fall semester as Freshman in tax year 1; then Freshman spring and Sophomore fall in tax year 2; and Sophomore spring and Junior fall in tax year 3. You could take the Hope credit in any 2 of those three year.

Hope this helped.

[Gretel]

Yes, I agree. In addition I learned that it is not actual years that count but what is considered by the institution to be the first two years of college. I think this applies if a student fails to get enough credits to be considered to have completed the first two years.

So, it can happen that the third year (1st year=2007/2008, 2nd year 2008/2009, 3rd year 2009/2010), which would be 2009 and/or 1010 would qualify for the Hope credit.

[Super Mom]

Degree

But he got his associate degree before 2008. No qualify, right?

[Gretel]

Yes this is right.