They are federal income tax benefits from the IRS. They are not scholarship awards from KCC Financial Aid Office. You must first pay for your tuition at the College. You must have earned income and file a tax return. You will receive a 1098-T form from KCC to verify your student status. After your Hope Scholarship Tax Credits are subtracted in you 1040, you will owe less federal income tax. You can't declare beyond a zero tax liability. It may increase any eligible refund due to you.

Half-time spring or fall (6 credit hours or more) College freshman or sophomore.

Maximum $100,000 joint or $50,000 single filers benefits reduced for $80,000-100,000 joint and $40,000-50,000 single. No credit allowed for married filing separate. You must have some earned income to file.

Only tuition & related fees paid after 12/31/97. No activity fees, books, room & board, etc.

Deduct scholarships, grants, employer payments. However, student loans to be repaid may be used. You may only declare portion you have paid.

Time limit is any two consecutive calendar years, not academic years. Each student only Hope or Lifetime Learning per tax year. Maximum credit is per student. If refund, payable to tax filer, not to dependents.

January 1, 1998

100% of first $1000 eligible tuition and 50% of 2nd $1000, maximum $1500 credit. Use 1098T to complete IRS form 8863, file with 1040 return.

Call the IRS hot line dedicated to Hope/Lifetime tax credits at 1-202-622-2970. See info with Q&A's on the IRS website. Free Internet access is available to our students at all KCC sites. KCC is not liable for any federal tax interpretation.