Hope Credit
You can claim a Hope Credit only for an "eligible student." An "eligible student" is a student who:

• As of the beginning of the year, has not completed the first two years of post-secondary education (that is, generally is a freshman or sophomore in college).
• Is available only until the first 2 years of post-secondary education are completed
• Is enrolled in a program that leads to a degree, certificate, or other recognized educational credential, for at least one academic period beginning during the year.
• Is taking at least one-half of the normal full-time workload for the student's course of study for at least one academic period beginning during the calendar year, and
• Is free of any federal or state felony conviction for possessing or distributing a controlled substance as of the end of the year.

An eligible student can be you, your spouse, or your dependent for whom you claim an exemption. The maximum Hope Credit is $1,650 (100% of the first $1,100 of eligible expenses and 50% of the next $1,100 expenses) for each eligible student.

The Hope Credit is gradually reduced if your modified adjusted gross income is between $47,000 and $57,000 ($94,000 and $114,000 in the case of a joint return). The credit cannot be claimed if your modified AGI is $57,000 or more ($114,000 in the case of a joint return).

Lifetime Learning Credit
You are allowed a Lifetime Learning Credit of 20% of the first $10,000 you paid for qualified tuition and related expenses for yourself, your spouse, or your dependent for whom you claim an exemption. The maximum amount of credit you can claim for 2007 is $2,000 (20% of $10,000) for all students in the family.

The Lifetime Learning Credit is not based on the student's workload. It is allowed for one or more courses that the student takes at an eligible educational institution. The credit is not limited to students in the first two years of post-secondary education. Expenses for graduate-level degree work are eligible. However, to be eligible for the credit, the student must be taking course work in order to acquire or improve job skills. There is no limit on the number of tax years for which the Lifetime Learning credit can be claimed for each student. The amount you can claim as a credit does not increase based on the number of students for whom you pay qualified expenses.

The Amount of the Lifetime Learning Credit is gradually reduced if your modified adjusted gross income is between $47,000 and $57,000 ($94,000 and $114,000 in the case of a joint return). The credit cannot be claimed if your modified AGI is $57,000 or more ($114,000 or more in the case of a joint return).