Uncle Sam has offered two different alternatives for families trying to cope up with their educational expenses – the hope scholarship and lifetime learning credit. You cannot claim both the credits at the same time. You need to make a selection between them. There are different criteria for eligibility and you need to be careful when making your selection.
Firstly, remember that these are tax credits. They are not deductions, so they lower your tax liability. So whatever taxes you are required to pay on your tax return can be reduced by either of these tax credits. If your tax liability is lower than these tax credits, then you are allowed to use these credits only to the extent of zeroing your tax liability.
» Read more: The Hope Scholarship Or Lifetime Learning Credit Make the Right Choice