Education Credtis (Hope & Lifetime Learning Credits)

You may be able to take the credits if you, your spouse, or a
dependent you claim on your tax return was a student enrolled
at or attending an eligible educational institution. The credits are
based on the amount of qualified education expenses paid for
the student in 2007 for academic periods beginning in 2007 and
the first 3 months of 2008.

Generally, qualified education expenses paid on behalf of the
student by someone other than the student (such as a relative)
are treated as paid by the student. Also, qualified education
expenses paid (or treated as paid) by a student who is claimed
as a dependent on your tax return are treated as paid by you.
Therefore, you are treated as having paid expenses that were
paid from your dependent student’s earnings, gifts, inheritances,
savings, etc.

You cannot take the education credits if any of the following
apply.
* Your filing status is married filing separately.
* Your adjusted gross income on Form 1040, line 38, or Form
1040A, line 22, is (a) $114,000 or more if married filing jointly, or
(b) $57,000 or more if single, head of household, or qualifying
widow(er).
* You are claimed as a dependent on another person’s tax
return, such as your parent’s return (but see the Note above).
* You (or your spouse) were a nonresident alien for any part of
2007 and the nonresident alien did not elect to be treated as a
resident alien.