The HOPE "Scholarship" is actually a tax credit available to eligible students during their first two years of postsecondary education.  The tax credit covers all of the first $1,000 of tuition and fees that students pay and one half of the second $1,000 during the qualified period.

To be eligible, a student must be enrolled at least half time (6 credit hours or more) in a degree, certificate or other program leading to recognized education credential (i.e. associate degree, certificate of proficiency, etc.).

The tax credit is available for two tax years to those students who have not completed the first two years of post secondary education.

HOPE applies only to tuition and fees you pay; not to books, dormitory/living costs, or other college related expenses.

The amount of tuition and fees covered by the HOPE tax credit is reduced by other grant and scholarship aid received.  This includes scholarship funds excluded from your gross income, as well as federal aid such as Pell Grants.  
Example:  If a student incurs $1,250 in tuition and fees and receives a Pell Grant greater than $1,250, he/she is not eligible for the HOPE Scholarship.  Or, if a student is responsible for $1,250 in tuition and fees and receives a Pell Grant of $700, the student is eligible for a tax credit of $550.

Eligible individuals may claim their credit when they file their federal income tax forms.

Yes.  Individual filers who earn income in excess of $50,000 are ineligible, as are joint tax filers whose income exceeds $100,000.  In addition, any student convicted of a felony related to the possession or distribution of a controlled substance such as heroin or marijuana is not eligible.  The tax credit is also reduced by certain other types of financial aid received by the student such as the Pell Grant.

Students attending less than half time (six credit hours) are not eligible for the HOPE tax credit.  However, they are eligible for the Lifetime Learning Credit described below.

Students/parents filing for the tax credit will have to complete a separate tax schedule (form 8863) and claim the credit on the standard 1040 form.

The program is a federal tax credit.  MTC is responsible for reporting the names, addresses and taxpayer identification numbers of its students, as well as for providing information relating to any other individual who might claim the student as a dependent for the purpose of filing for the HOPE tax credit.  MTC is also required to document the net payments of qualified tuition incurred by students eligible for HOPE.

Contact your tax advisor for specific information.  You may also find additional information on the IRS website.

Marion Technical College provides equal opportunities regardless of race, color, national origin, sex, disability, age, military status, or sexual orientation.  MTC reserves the right to change these scholarships as financial conditions warrant.

Update 01/08