<p>The 2009 tax information lists these two credits separately. It looks like the Hope rules may only exist for students from the Midwestern disaster areas (2008 flood) which means that it isn’t for us anyway.</p>
<p>So this means that my question boils down to: Claim the credits for 2010, 2011, 2012, and 2013 or for 2011, 2012, 2013, and 21014 (or for some other four tax year combination from those five calendar years)?<br>
Tax year 2010 our expenses will be well under $1000 for books, materials, and perhaps one credit as the scholarship covers 15 credits.<br>
Tax year 2011 our expenses will encompass books and materials for two semesters and possibly full tuition/fees for the first semester of school year 2011-2012 (if the scholarship is not renewed), so anywhere from $1000 to $4500.
Tax year 2012 will include one semester at the community college and one semester at presumably much higher tuition/fees and almost certainly with room and board at the transfer-to institution (not identified at this point). If that institution hits us for our full EFC, the total for the year for both places would be upwards of $11,000. Possibly closer to $15,000.
Tax year 2013 presumably a full year at the new institution, and if full EFC is expected, expenses upwards of $20,000.
Tax year 2014 if all goes well, the final semester to complete the Bachelor’s degree, again upwards of $10,000.</p>
<p>Since there are no tuition and fees for 2010-2011 there is no point in taking the Tuition and Fees Deduction, but that might make sense further on. And there is always the Lifetime Learning Credit that could be used I suppose for the last semester.</p>