Illustrated Example(p28)

Jim Grant, a single taxpayer, enrolled full-time at a local college in a Midwestern disaster area to earn a degree in computer science. This is the first year of his postsecondary education. During 2009, he paid $5,000 for his qualified 2009 tuition. He received Form 1098-T (shown below) from the college. He and the college meet all of the requirements for the Hope credit. Jim's MAGI is $37,000. His income tax liability, before credits, is $3,734. He claims no credits other than the Hope credit. He figures his credit of $3,600 as shown on the Form 8863 on pages 29 and 30.