Since You Asked...

Question – My son will be entering college this fall, and I’m paying all of his expenses. From what I understand, the Hope credit is allowed only in the first two years of post-secondary education. Does that mean I will only qualify for the Hope Credit for a partial year during his first year and a full year the following year?

Answer – The answer is “yes” and “no.” For students entering college in the fall, the first year is only a partial year. It might be appropriate to claim the Lifetime Credit for the first year and the Hope Credit in the next two full years, as long as your son doesn’t complete his sophomore year before the beginning of the second tax year. On the other hand, the tuition can be paid for up to three months in advance, so you could prepay the first three months of the next year and claim the Hope Credit in the first year.

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