Discussion:College credits while still in high school

http://www.irs.gov/publications/p970/ch02.html#d0e2684 Under "Who is an Eligible Student" it gives this example (#3):
"During the 2004 Fall semester, Luis was a high school student who took classes on a half-time basis at College X. Luis was not enrolled as part of a degree program at College X because College X only admits students to a degree program if they have a high school diploma or equivalent. Because Luis was not enrolled in a degree program at College X during 2004, Luis was not an eligible student for tax year 2004." So, unless your client's daughter was registered as a "degree seeking" student, it would appear that she doesn't qualify.

http://www.irs.gov/publications/p970/25221v07.html http://www.irs.gov/publications/p970/ch03.html#d0e3452 http://www.irs.gov/taxtopics/tc605.html

Section 25A(b)(3) provides very specific guidelines for determining an “eligible student”. Specifically, the statute provides that the student must satisfy the requirements of Section 484(a)(1) of the Higher Education Act of 1965. Section 484(a)(1) of the 1965 Act was codified into 20 USC, § 1091(a)(1).

Basically, the statute was designed to determine eligibility for Federal student aid, but was adopted by reference into the Hope statute [26 USC, § 25A(b)(3)].

The end result of all this is that any student who is enrolled or accepted into any program that ultimately leads to a “recognized educational credential” (including study abroad) satisfies the 1965 Act. Thus, most students who are matriculated will ultimately be eligible to receive some sort of certificate or degree if they stay long enough, and should be eligible for the Hope Credit.

In simple terms, the regulations state that if you are not admitted or enrolled as a regular student, then you may not claim the Hope Credit. This means that I cannot claim the Hope Credit for the tuition that I paid for my 16-year old daughter (now a senior in high school) who took lower division calculus courses at the University of California last summer since she is not an admitted student. However, I have every right to claim the Hope Credit for the tuition paid for her regular attendance at the local junior college this spring since she is taking 8 units and is a regular student eligible for an AA degree after 60-semester units.

Student Eligibility The Department of Education uses the information provided on your FAFSA to determine your eligibility for aid from the Federal Student Aid (FSA) programs. Some of the requirements to receive aid from FSA programs are that you must: 1) Be a citizen or eligible noncitizen of the United States with a valid Social Security Number; 2) Have a high school diploma or a General Education Development (GED) certificate or pass an approved "ability to benefit" test; Enroll in an eligible program as a regular student seeking a degree or certificate; 3) Register (or have registered) for Selective Service, if you are a male between the ages of 18-25; and 4) Have a result of Eligible or Partially Eligible on the Drug Conviction question (Question 31).

Thanks to all. I hope this finally puts this issue to rest.

In addition, I need to correct my previous statements about concurrent enrollment. Under Sec. 484(a)(1) of the Higher Educational Act of 1965, a college student who is also enrolled in an elementary school or high school is automatically ineligible for Federal student aid, thus also making him ineligible for the Hope Credit.

Therefore, I would be wrong in claiming the Hope Credit for my 16-year old daughter’s attendance at the local community college – even though she is a degree candidate, since she still attends high school on a regular basis.