Hello again dj,
Thank you for the clarification.
Actually the new stimulus bill which you refer to is an enhanced version of the current Hope Credit. Under the previous regulations
, the Hope Credit offered a 100% credit for the first $1,200 of qualified expenses and 50% of the next $1,200 in qualified expenses, so that the maximum credit which could be claimed was $1,800.
As part of the recently-signed stimulus bill, an ‘enhanced’ Hope Credit, known as the ‘American Opportunity Tax Credit,’ provides 100% credit for the first $2,000 of qualified expenses and 25% for the next $2,000 qualified expenses such as tuition, fees and required books. That’s $2,500 per student on your 2009 and 2010 federal
returns versus only $1,800 per student in 2008.
But the same rules
for claiming this credit still apply as I gave you in my original post. So again, you would need to claim your daughter as a dependent on your return in order to qualify for this credit.
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Thank you dj, and please let me know if you have additional questions or need clarification on any of these points.