Tax Credit

The Hope Scholarship Tax Credit is actually a federal tax credit program, not a scholarship. Your family must file a federal tax return and owe taxes.* The Hope credit is not refundable for families who do not pay taxes, who owe less in taxes than the maximum amount of the Hope tax credit for which the family is eligible, or who receive financial assistance that pays their tuition and fees.

Your family may claim a tax credit of up to $1,500 per tax year for each eligible dependent. This can be done for up to two tax years. Your family may claim up to 100% of the first $1,000 of eligible expenses and 50% of the next $1,000 for a maximum credit of $1,500.

The actual amount of the credit depends on your family's income, the amount of qualified tuition and fees paid, and the amount of certain scholarships, grants and exemptions subtracted from tuition. The total maximum credit also is based on the number of eligible dependents.

In early February, federal income tax form 1098T will be mailed to you and the IRS for reporting your enrollment for the past fiscal year. Be certain that Lone Star College System has your correct mailing address on file.

*Lone Star College System does not do your taxes for you.