- 1). Check your records to make sure you qualify for the Hope Credit. You must have paid tuition for post-high school classes for yourself, your spouse or your dependent for whom you claim an exemption on your taxes. The student for whom you paid tuition must have been "eligible." For example, in order for a student to qualify for the 2008 tax year, he or she must have been at least a half-time student for each semester (fall and spring) of 2008, and not have had any convictions for illegal substances between January 1 and December 31, 2008. The credit also cannot have been claimed for this student more than once previously.
- 2). Make sure you (the person claiming the credit) did not have a filing status of "married filing separately" and are not listed as a dependent on someone else's return. Your adjusted gross income must also be under a certain amount, which changes regularly. (For the current amount, see Publication 970 referenced below).
- 3). Fill in all requested information on form 8863 using the information from Form 1098T and your receipts. Be careful to fill out the correct section. Part I and II differ based on the area of schooling, and Part III is for claiming the Lifetime Learning Credit.
- 4). Follow the directions to calculate the amounts for each line of section IV and V of Form 8863. Read each step thoroughly and double-check your math.
- 5). Transfer the final amount from box 29 of Form 8863 to box 49 of Form 1040. Continue to complete the return as normal.
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