If you paid qualifying educational expenses in 2000 for yourself, your spouse, or a qualifying dependent, you may be able to claim one of the two new education credits, either the Hope Scholarship Credit or the Lifetime Learning Credit. Note that you can claim only one for each qualifying student, although you may be able to qualify for the Hope credit for one student, and the Lifetime Learning credit for another.
Amounts paid with gifts from private individuals do qualify for the credit.
The expenses must be paid for the taxpayer, his spouse, or someone who is the taxpayer's dependent for the tax year. These amounts are scheduled to be indexed for inflation after the year 2000. The credit is not available to those who are married filing separately. The HOPE credit is not allowed for students who are convicted, before the end of the tax year, of federal or state felony possession of a controlled substance. The credits are calculated and reported on Form 8863, and then carried to Form 1040.