A primer on the Hope and Lifetime Learning Credits.

Tax Adviser, The, April, 1999 by Miller, Estelle, E.

The Taxpayer Relief Act of 1997 (TRA '97) added Sec. 25A, providing the Hope

Scholarship and Lifetime Learning Credits, to foster higher education. Proposed regulations explaining these credits (with many helpful examples) were released for public comment on Jan. 6, 1999.

Hope Scholarship Credit

Beginning Jan. 1, 1998, qualifying taxpayers may claim the Hope Scholarship Credit against their Federal income tax liability. The Hope Credit is a nonrefundable credit for "qualified tuition and related expenses" of each eligible student in a taxpayer's family (the taxpayer, the taxpayer's spouse or an eligible dependent), for whom the taxpayer claims a dependency exemption under Sec. 151 (Sec. 25A(f)).

The maximum credit per student per...

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