Attention Students:

1098-T tax forms have been mailed to your permanent address. You may also access and print your 1098-T form by going to http://www.1098-t.com. From here, you will enter your social security number (student ID number) and your last name, a PIN will automatically be assigned to you at that time. You may then access your account and print a copy of your 1098 for the current tax year. Also contained in the web site is a TRA '97 informational page containing a list of frequently asked questions, forms, instructions and a worksheet. Through this web site, you may also submit a individualized questions you may have about the Taxpayer Relief Act directly to Tax Credit Reporting Service.

For more information regarding the Taxpayer Relief Act and links to the IRS see below.

Hope Scholarship Credit, Lifetime Learning Credit &
  Student Loan Interest Deduction

Several new tax benefits became available to students and their families with the enactment of the Balanced Budget Act of 1997and the Taxpayer Relief Act of 1997. These tax credits will ease the individual income tax burden of some families. Three of these newly established programs are of particular relevance to students: the Hope Scholarship, the Lifetime Learning Credit, and interest deduction of educational loans.

Hope Scholarship Credit

The Hope Scholarship Credit is a nonrefundable tax credit for students in their first two years of college. A non-refundable tax credit means that if a taxpayer has no tax liability, the tax credits will not be available. This tax credit may be used for tuition and related fees and is applicable to payments starting on January 1, 1998. The credit is equal to 100% of the first $1,000 and 50% of the next $1,000 paid within a tax year of qualified tuition and related expenses paid by the taxpayer.

The eligibility requirements for the Hope Scholarship Credit are as follows:

• The student must have a high school diploma or its equivalent.

• The student must be enrolled at least half time in a program leading to a degree or certificate during at least one semester or summer session within the tax year.

• The student must be enrolled in one of their first two (2) years of post secondary education at an eligible institution.

• The student must be free of any conviction for a Federal or State felony offense due to the possession or distribution of a controlled substance.

Additional Hope Scholarship Credit information:

• The credit is only allowed for two (2) taxable years per student.

• The Hope Scholarship Credit covers qualified costs, which includes tuition and fees, but specifically excludes books, room and board, nonacademic fees (i.e. student activity fee, athletic fees, insurance expenses, etc.), and expenses involving sports, games, or hobbies unless they are part of the student's degree program.

• The credit is gradually phased out for taxpayers who have modified adjusted gross income between $40,000 and $50,000 ($80,000 to $100,000 for married taxpayers filing jointly).

• Scholarships and grant aid do not count as qualified tuition and related expenses paid by the taxpayer. Generally only out-of-pocket expenses count, however, this includes gifts, bequests, and inheritances as qualified tuition and expenses paid by the taxpayer.

• Taxpayers may first claim the Hope Scholarship Credit on their 1998 tax returns in 1999.

Lifetime Learning Credit

The Lifetime Learning Credit is a nonrefundable tax credit available to students and adults who are pursuing lifelong learning to upgrade their job skills. It may be claimed for payments of qualified tuition and related expenses made on or after July 1, 1998, for academic periods beginning or after July 1, 1998. This credit is an amount equal to 20% of the first $5,000 of qualified tuition and related expenses through the year 2002 and for the first 20% of the first $10,000 of qualified tuition and related expenses thereafter.

The eligibility requirements for the Lifetime Learning Credit are as follows:

• The student must have a high school diploma or its equivalent.

• The student must be enrolled in a degree, certificate, or program leading to a recognized credential and must attend an eligible post-secondary educational institution, but does not have enrollment status requirements like the Hope Scholarship.

• The student must be free of any conviction for a Federal or State felony offense due to the possession or distribution of a controlled substance.

Additional Lifetime Learning Credit information:

• This tax credit is applicable to those enrolled in undergraduate, graduate education, or education geared to improve or acquire job skills.

• The Lifetime Learning tax credit may be claimed for an unlimited number of years as long as the individual meets the income limits and takes classes at an eligible institution.

• The credit may be used for part-time study, unlike the Hope tax credit requirements which stipulate a half-time enrollment status.

• The Lifetime Learning Credit may be claimed for the taxpayer, the taxpayer's spouse, or an eligible dependent. This credit does not vary according to the number of students in a household.

• It applies to all expenses paid after June 30, 1998 for education furnished in academic periods beginning after that date.

• The Lifetime Learning Credit covers qualified costs, which includes tuition and fees, but specifically excludes books, room and board, nonacademic fees (i.e. student activity fee, athletic fees, insurance expenses, etc.), and expenses involving sports, games, or hobbies unless they are part of the student's degree program.

• The credit is gradually phased out for taxpayers who have modified adjusted gross income between $40,000 and $50,000 ($80,000 to $100,000 for married taxpayers filing jointly).

• Scholarships and grant aid do not count as qualified tuition and related expenses paid by the taxpayer. Only out-of-pocket expenses count, however, this includes gifts, bequests, and inheritances as qualified tuition and expenses paid by the taxpayer.

• Eligible taxpayers will be able to claim the Lifetime Learning Credit on their 1998 tax return in 1999.

• Both the Hope Scholarship Credit and the Lifetime Learning Credit cannot be claimed for a specific student in the same tax year. However, a taxpayer may use the Hope Scholarship for certain family members and Lifetime Learning for other family members during the same tax year.

Student Loan Interest Deduction

Student Loan Interest Deduction is a nonrefundable deduction on qualified education interest loans for the costs of attendance. This includes payments of interest which are due and paid after December 31, 1997 and covers the first 60 months/five years of interest payments on a loan. The amount deducted will be phased in over a five year period of time: the maximum deduction is $1,000 in 1998, $1,500 in 1999, $2,000 in 2000, and $2,500 in 2001 and each year following.

Additional Student Loan Interest Deduction information:

• The student loan must have been used to pay the costs of attendance at an eligible educational institution for a student enrolled at least half-time in a program leading to a degree, certificate, or recognized credential.

• Costs of attendance include tuition, fees, room, board, books, equipment, and other necessary items, such as transportation.

• Interest is deductible for loans taken on the taxpayer's own education, spouses' education or dependent's education, but not for other benefactors or relatives.

• To qualify for the maximum deduction a single filer must have an adjusted gross income less than $40,000 and joint filers less than $60,000. The deduction amount decreases as the filer's income increases and is phased out at income levels above $55,000 for single filers and above $75,000 for joint filers. The modified adjusted income limitations will be adjusted in 2002 for inflation.

• The deduction is available regardless of whether the individual itemizes tax deductions.

• Taxpayers will be able to claim the deductions for the first time on their 1998 tax returns in 1999.

Resources

Many questions and unresolved issues accompany this new legislation. Thus, some additional resources which may offer information about this tax credit legislation can be found below. In addition, we encourage you to consult your tax advisor for specific information about your eligibility and potential benefit.

Internal Revenue Service (IRS)
  Tax Information for Students
  Tax Benefits for Education (pdf)