When you file your federal income tax, make sure to tell the tax preparer that you want to use the Hope Credit. You're permitted to use it twice as an undergraduate. I believe the Hope Credit is now at $2000 credits
Fill out the education form; place your tuition and other qualified expenses in the boxes. If you are due a $2000 refund, you will receive an additional $2000 - $4000 total. The same applies for owing. If you owe $2000, then you won't owe anything.
After using the Hope Credit, you still can use the Lifetime Learning credits, which accounts for 20% of tuition. Also, keep in mind, make sure you also include qualified interest for student loans.
Please take advantage of this great opportunity. Ask your local tax adviser, tax preparer, or conduct research on the Internet.