Can I/Should I claim Hope/Lifetime Tax Credit?

I attended college full-time and worked part-time throughout 2007 for an income of less than $10,000. I've read through the requirements and I think I meet all of them, but I'm a bit confused: I received scholarships/grants in combination with loans in order to pay for tuition/living expenses, etc. Using this package, my school automatically paid my tuition and fees, and then refunded the remaining funds to me. Now which can I claim for the tax credit? The total amount of loan money borrowed?

Furthermore, for about half the year I was living at home, then moved out during the summer and have been living on my own since. Would I be considered a dependant in 2007 or not? In other words, could my parents claim the tax credit or me?

Also, I've read that they are non-refundable tax credits. Does that mean that if I am expecting to receive a tax refund that they will not help me?

Thanks.

If you are under 19 or under 24 and a full-time student, then your parents can claim you if you did not provide over half of your own support. Scholarships you received as a full-time student do not count as support.

If you are claimed as a dependent on your parents' tax return, any eligible expenses paid by you can be used by your parents to get an education credit (Hope or LLC).

If you are a dependent but your parents do not claim you, then any eligible expenses paid by you can be used by you to get an education credit. However, you cannot claim your own exemption.

If you are not a dependent then you can claim an education credit or the tuition and fees deduction for your eligible expenses.

If your scholarships and grants covered all of your tuition and fees, you will not be able to take an education credit. If some of the loan was used for tuition and fees, only that part of the loan may be used as an eligible expense for an education benefit.

Funds that were given to you and not used for tuition and fees cannot be used for an education benefit.

The education credits will reduce taxes you owe, regardless of whether you are getting a refund or not. The tuition and fees deduction will reduce your adjusted growth income.

The amount of the education benefit is limited to taxes you owe.

If the amount of the scholarships/grants covered the tuition and fees, you wouldn't be eligible for the credit.

You say you lived at home for "about" half a year. Was it more than half, or less than half? If you lived there for OVER half the year, even by one day, and you are under 24 as of the end of the year, and you didn't provide over half of your own support, then you'd be a dependent and your parents would get the credit rather than you getting it.

It's not whether you are expecting a tax refund or not that counts, its' whether you had any tax liability - line 10 if you used a 1040EZ.