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Home > Future Students > Paying for College > Financial Aid > Education Tax Credit > Hope Scholarship Tax Credit

Hope Scholarship Tax Credit

According to the Taxpayer Relief Act (TRA) of 1997, the Hope Scholarship is a tax credit which is available to the taxpayer for qualified tuition and related expenses.

The taxpayer may be the student claiming federal tax return, or the parent of the student claiming the student as a dependent on a federal tax return. The student must have a high school diploma or its equivalent and be enrolled half-time or more in a program that leads to a degree or certificate for at least one academic period during the tax year.

The Hope Scholarship tax credit can be claimed only for two tax years and applies only to the first two years of postsecondary education. A student cannot have a drug felony conviction on possession or distribution in a year that the tax credit is claimed. Education expenses paid on or after January 1, 1998, may be eligible for Hope credit.

The credit is taken in the year expenses are paid and education either begins that year, or the first three months of the following year. Before calculating the credit, the taxpayer must deduct any scholarships and other tax-free financial assistance, including a Federal Pell Grant and employer - provided educational assistance. However, educational expenses paid for with loans are eligible for these tax benefits. The credit is indexed for inflation. Refer to IRS Form 8863 for the maximum credit amounts for your tax return.

NOVA Tax Information Office 703.323.2402

Hours: 8:30 a.m. to 5:00 p.m., Monday through Friday
(February 1 to April 15)

  • If you have questions about the information reported on your 1098-T for the Hope or Lifetime Learning Tax Credits, call this office for assistance.
  • If you have questions about interest deductions for qualified student loans that were reported on your 1098-E, call University Accounting Service Inc. at 1.800.999.6227.
  • If you need a copy of a receipt for qualified expenses for credit or non credit enrollment, call this office for assistance.

What you need to do.

IRS Resources