Hope Scholarship and Lifetime Learning Tax Credits


Taxpayers may be eligible to claim a nonrefundable Hope Scholarship or Lifetime Learning Tax Credit to help them pay for postsecondary education for themselves and/or their dependent children. These tax credits can reduce the amount of federal income tax.

Hope Scholarship Tax Credit. This tax credit is available to a taxpayer for qualified tuition and related expenses. It is available to parents of dependent students or to students who are not claimed as dependents on their parents’ federal tax return. A student must enroll at least half time during at least one academic period during the tax year (January 1, 2005 - December 31, 2005). The Hope credit can be claimed only for two tax years and applies only to the first two yearsof postsecondary education. The tax credit is equal to all of the first $1,000 of tuition and fees (less scholarships, grants, and tax-free tuition benefits) and half of the next $1,000 of tuition and fees. The maximum credit is $1,500. A student cannot have been convicted of a drug felony in a year that the credit applies. The exact amount of the credit depends on your family’s income, the amount of qualified tuition and fees paid, and the amount of certain scholarships and allowances subtracted from tuition. The College will mail a 1098-T form to IRS and to students. The form provides a telephone number if you have questions.

Lifetime Learning Tax Credit. This credit applies to tuition and fees for undergraduate, graduate, and continuing-education course work taken part time to improve or upgrade job skills. A family can claim a credit of up to 20% of $10,000 of eligible expenses paid after January 1, 2005, making the maximum benefit $2,000. The Lifetime Credit is available for an unlimited number of years. Eligible education expenses are reduced by scholarships, grants, and other tax-free tuition benefits.

(Note: the credit is phased out for joint filers adjusted for inflation. See the current IRS Form 8863 for the revised AGI limits.)

What You Need to Do:

  1. Keep copies of documents related to payment of qualified tuition and fees, such as canceled checks or credit card statements, financial aid awards, scholarships received, and employer-paid tuition benefits for each tax year. You may reference some of this information on NovaConnect at http://www.nvcc.edu/novaconnect/.

  2. Obtain relevant IRS forms and documents, such as IRS Publication 970, Tax Benefits for Higher Education. Telephone: 1-800-829-3676 for forms and 1-800-829-1040 for information.

  3. Visit the IRS Web site at www.irs.gov/pub/irs-pdf/p970.pdf or NVCC’s Web site at http://www.nvcc.edu/depts/accounting/taxes/Tax%20Credit%20Information.htm for more information.

  4. Make sure that Admissions and Records has an accurate social security number (SSN) or individual taxpayer identification number (ITIN) and address for you and any individual who can claim you as a dependent on the federal tax return for College reporting to the IRS.

  5. Update your mailing address on NovaConnect no later than December 31, 2005, to receive a copy of IRS 1098-T reporting form.


Northern Virginia Community College 2005
This page was last updated on June 20, 2005 10:10 AM
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