I am an H1B visa holder. During 2008 my wife (H4 visa holder, no SSN but has Tax ID Number) attended a college for English courses and I paid over $3,500 for this (I have the form 1098-T).

1) Can I apply for education credit (Hope Credit) using Form 8863. If I can, this would allow me a $1800 tax credit.

2) If the answer is No to #1, then can I apply for tuition and fees deduction. This would lower my taxable income by a bit.

I find the tax people on this forum very knowledgeable and helpful so thank you in advance.

Yes, you may be eligible to file joint return as residents. Then you can deduct tuition and fees paid or take education credit.