Unformatted text preview: $1,207. Apply the Hope Tax Credit: 100% of the first $1,000, and 50% of the next $1,000 not to exceed a total tax credit of $1,500 for the tax year. This comes out to be $1,000 + (.5 x $207) = $1,103.50 tax credit for the year 2000. After tax tuition and fees for the fall semester end up being $103.50. Spring semester begins a new tax year for most folks, so another $1500 maximum tax credit is available for 2001. Assuming tuition remains unchanged (unlikely), again your after tax tuition and fees for the spring semester 2001 would end up being $103.50. Your first year of college winds up costing you $207.00 for tuition and fees after taxes. Not too bad....
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- Fall '10
- Taxation in the United States, tax credit, Taxation in the United Kingdom