Compare and contrast the HOPE Credit and the American Opportunity Credit. Who benefits from these changes? Why were these changes made?
The hope credit can only be used for the first two years of college. The hope credit is based on tuition and related expenses. The American opportunity is a modification of the hope credit. The American opportunity credit is now used for the first four years of college. Previously, the hope credit was used for two years, and then the tuition and fees deduction or the lifetime learning credit was used for the remaining years. Under the American opportunity credit, the first four years of undergraduate study ...
The solution provides a detailed comparison of the HOPE and American Opportunity Credits, and also discusses who benefits from the changes that were made and why the changes were made to the education credits.