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Hope and Lifetime Learning Credit

We have gathered together some information concerning the Hope and Lifetime Learning tax credits that we hope you will find useful.

  • Overview – Hope and Lifetime Learning Tax Credits

Basic information about these two tax credits

Qualified tuition and fees, payment and reporting information

For advice concerning these tax credits and the timing or dating of your payments, we suggest that you contact your tax consultant.

Overview – Hope and Lifetime Learning Tax Credits

The Hope Scholarship Tax Credit is a tax credit equal to 100% of the 1st $1,000 of a student’s qualified educational expenses plus 50% of the next id="mce_marker",000. The maximum credit is $1,500 per student in each of the first two years of a postsecondary degree program. Students must be enrolled at least halftime during at least one academic period that begins during a tax year and cannot have had a drug felony conviction. The credit is allowed for a qualified tuition and related expenses paid in 2002 or in the first 3 months of 2003.

The Lifetime Learning Credit applies to qualified tuition and fees for undergraduate, graduate, and continuing education course work at an eligible education institution. A taxpayer can claim a credit equal to 20% of $5,000 of qualified educational expenses paid for the taxpayer, his or her spouse, or dependent children. The maximum credit is $1,000 per family per year. Starting in 2003, the amount of eligible education expenses increases to $10,000, resulting in a $2,000 maximum tax credit. The credit is allowed for qualified tuition and related expenses paid in 2002 for an academic period beginning in 2002 or in the first 3 months of 2003.

Limitations related to both tax credits:

  • The Hope and Lifetime Learning Credits cannot both be claimed for the same student in the same tax year. The taxpayer may claim both credits on one tax return (for different students) but must choose which credit to claim for each individual. These credits may not be combined with tax-free withdrawals from education IRA’s.
  • Scholarships, grants, and other tax-free tuition benefits offset eligible education expenses.
  • The full value of both education tax credits is available to married taxpayers filing jointly with an adjusted gross income (AGI) of $82,000 or less and to single taxpayers with an AGI of $41,000 or less. The tax credits phase out gradually. Once married taxpayers’ AGI exceeds $102,000 or single taxpayers’ AGI exceeds $51,000, they are not eligible for these credits.
  • A student who is claimed as a dependent on another taxpayer’s return may not claim a tax credit on his or her own tax return. The credit will be claimed on the return of the taxpayer claiming the student as a dependent.
  • Married taxpayers must file a joint return.
Citadel Hope and Lifetime Learning Information


  • Qualified Citadel tuition and related expenses

Qualified tuition and related expenses include tuition and fees required for enrollment or attendance of taxpayers, their spouses, or any of their dependents. Qualified expenses do not include room, board, books, athletic fees, and activity fees. Based on the 2001-2002 and 2002-2003 fees of the college, the amounts below are the applicable Citadel fees:

Spring 2002 Semester Fall 2002 & Spring 2003 Semesters
In State Out-of-State In State Out-of-State
Registration $12.50 $12.50 $12.50 $12.50
Tuition 62.50 192.50 62.50 192.50
College Fees 1,295.50 4,503.00 1,438.00 5,043.50
$1,370.50 $4,708.00 $1,513.00 $5,248.50

You may also include lab fees and computer fees charged to student accounts.



Spring 2001 Semester Fall 2001 & Spring 2002 Semesters
In State Out-of-State In State Out-of-State
Registration $15.00 $15.00 $15.00 $15.00
Per Credit Hour $146.00 $291.00 $162.00 $323.00
Registration $15.00 $15.00 $15.00 $15.00
Per Credit Hour $141.00 $285.00 $157.00 $316.00

You may also include lab fees and computer fees charged to student accounts.


  • Information Reporting
  • The IRS requires that we send you a Form 1098-T by January 31, 2003. This form documents your enrollment and whether or not you are a graduate student. You do not file Form 1098-T with your tax return.
  • The Citadel provides you with the detail of your charges, payments and scholarships on the back of the 1098-T form. This financial detail is not sent to the IRS, but is provided to assist you in calculating your tax credit.
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