Students in the first two years of college (or other eligible post-secondary training) can qualify for the federal Hope Tax Credit. The credit covers 100% of the first $1,000 of tuition and mandatory fees and 50% of the second $1,000 during the qualified period. Grants, scholarships and other tax-free educational expenses reduce your eligible amount.

Taxpayers can claim a credit for their own tuition expenses, those of their spouse, and dependent children. The credit is phased out for joint filers between $80,000 and $100,000 of income and for single filers between $40,000 and $50,000.

The credit can be claimed in two taxable years (but not beyond the year when the student completes the first two years of college). You must be enrolled at least on a half-time basis in a degree, certificate, or other program leading to a recognized educational credential for some portion of the tax year.