The Hope credit depends on the adjusted gross income. The credit is able to be used to get a tax credit however it cannot be used as the basis for a deduction. Tax credit can be claimed dollar-for-dollar amount of the taxes due to a taxpayer. If a dependent is eligible to receive a Hope credit and the maximum amount that one can receive is $1650 There’s a 2-year limitation on this Hope credit. So, taxpayers are not able to use the credit after two years have passed since the schooling of the dependent who is eligible.
A taxpayer could also utilize to claim the Lifetime Learning credit as a tuition credit. This credit does not have a two-year limit on it. It functions a little different than the Hope credit. A taxpayer is entitled to claim a 10% deduction on the first $10,000 they spend for tuition. A maximum credit of 22,000 dollars is permitted. They aren’t refundable. The credits can reduce the tax a taxpayer has to pay, but won’t provide the taxpayer with a refund. 2h9s6in6r1.