<p>You are allowed to choose the benefit that is most beneficial for you. In most cases the AO is probably going to be the best as it is an actual tax credit of up to $2500 (based on 100% of the 1st $2000 qualified expenses and 25% of the next $2000). Plus part of it is refundable.</p>
<p>The Hope is not an option - it was replaced by the American Opportunity. Lifetime credit is 20% of the first $10,000 so a max of $2000 credit. None is refundable. The deduction reduces you taxable income by up to $4,000 which is not as good as a tax credit unless your tax rate is huge, in whaich case you probably would not qualify).</p>
<p>Work it out all ways and see what is best for you.</p>