These benefits are broadening access to the university and allowing more students to join the ranks of wellpaid professionals, whose skills are vital to Missouri's continued economic growth. Beginning in 1999, eligible taxpayers can claim two new tax credits for educational expenses incurred by themselves or their dependent children. These credits directly reduce the amount of federal income tax owed. The HOPE Scholarship credit is available on a perstudent basis for the first two years of postsecondary education, while the Lifetime Learning credit is applied on a taxreturn basis and covers a longer time frame and broader range of educational opportunities. Educational expenses paid for with taxfree grants, scholarships and employer assistance are not eligible for either tax credit.
Expenses paid with loans, however, are acceptable.
It is available to parents of dependent students and to students not claimed as dependents. The HOPE credit can be claimed for two tax years and applied to the first two years of education at Central. Students must be enrolled at least halftime during one or more of the academic periods beginning during a tax year to which the credit applies. This credit applies to fees for undergraduate, graduate and continuingeducation course work. Eligible education expenses are offset by scholarships, grants and other taxfree tuition benefits.