Hope Cr or Lifetime Cr?

[Sherill]

Student, graduated h.s. in 2001. Been attending college, full time for four years (apparently in limbo with no direction for a degree). Spring of 2006 will receive Assoc. Degree! College has mainly been paid for by scholarships,. . . but has a 1098-T for $693 for 2005.
No Hope or Lifetime Credits had been taken by previous tax preparer.
Is this a Hope or Lifetime learning credit?

[theresa d]

hope

hope covers first two years-associates degree would be first two years. as long as hope credit has not been taken previously for two years would qualify for the portion paid after scholarships..

[jainen]

when I was in school

I know college is all different now, but when I was in school two plus two equaled four.

[Safire]

"Been attending college, full time for four years "


Hope is only for the first 2 years of postsecondary education. This looks like lifetime credit to me.

You might be able to go back and do some amendments for them though.

[Dennis V]

College status

The key to determining eligibility for the Hope credit is his academic status on January 1, 2005. If he took a lot of classes but dropped them, he could conceivably still have sophomore status after four years. For expenses up to $7,500, it's better to take the Hope credit, so it's a good idea to see if he qualifies.

[Gretel]

I agree with Dennis, it's not the literal two years it's the years, which the college determines to be the first two years.

[OldJack]

In some cases it might be better to claim the tuition deduction on the 1040 page 1.

[S T]

Education Credits or Tuition Ded

Also check your software, My software will give the best overall tax advantage except for the State. Sometimes the Tuition Ded is better overall including the State as opposed to the Hope or Lifetime Credit that is ony availabe for the Fed Credit.

Sandy

[theresa d]

associates degree

my understanding is an associates degree is only for the first two years of college. as long as taxpayer hasn't taken hope credit for two previous years looks like they can take it.