Tax Credits and Veterans Benefits
The Hope Scholarship credit is available to eligible taxpayers on a per-student basis for the first two years of postsecondary education. Eligible taxpayers may claim this credit for tuition and fees up to a maximum of $1,500 for each student. The credit can be applied toward 100 percent of the first $1,000 and 50 percent of the next $1,000 of qualified expenses. The Hope Scholarship credit will be indexed for inflation after 2001.
To be eligible, you must be enrolled at least half time in at least one academic period that begins during a tax year. Educational expenses for periods of enrollment paid on or after January 1, 1998, qualify for the Hope Scholarship credit. Also, nonresident aliens generally are ineligible to claim the Hope Scholarship credit. Eligible expenses for this credit are offset by scholarships, grants and other tax-free tuition benefits.
For additional information on this program, click here.
Lifetime Learning Credit
The Lifetime Learning credit is offered to encourage people to improve or acquire new job skills. This credit applies to tuition and fees for undergraduate, graduate and continuing-education courses. Taxpayers can claim up to 20 percent of $5,000 of qualified expenses for tuition and related fees. The maximum benefit is $1,000 for each tax year. Part-time and full-time students are eligible for the Lifetime Learning credit.
Unlike the Hope Scholarship credit, you are not required to be enrolled half time in one of the first two years of postsecondary education. You may be eligible to receive a partial credit, even if you are taking only a single course at a community college. However, you must be within the income limits described below. Also, nonresident aliens generally are ineligible to claim the Lifetime Learning credit. Eligible expenses for this credit are offset by scholarships, grants and other tax-free tuition benefits. Education expenses paid on or after July 1, 1998, are eligible for the Lifetime Learning credit.
For additional information on these programs, click here.
Veterans who are eligible to receive educational benefits must inform the university registrar, who serves as the Veterans Certifying Official. The registrar will submit an Enrollment Certification to the Department of Veterans Affairs when the semester begins. Veterans wishing to use their benefits for the first time must provide a Certificate of Eligibility or submit an Application for Education Benefits to accompany the first certification. New students who received benefits at a previous institution must complete an Application for Change of Program or Place of Training to be submitted with the first certification by Mount St. Mary’s. For more information, call 301-447-5215.