Hope Scholarship

A tax credit that covers 100 percent of the first $1,000 and 50 percent of the next $1,000 of tuition and fees paid for the first two years of post-secondary education. Another credit, the Lifetime credit, allows a credit for 20 percent on the first $5,000 of tuition and fees, with a limit of $10,000 in 2003. The credits begin to be phased out for single filers with an adjusted gross income of $41,000 and married joint filers at $82,000.