The Taxpayer
Relief Act of 1997
Hope Scholarship
Tax Credit
Lifetime Learning
Credit
Student Loan
Interest Deductions
More
Information
The Taxpayer
Relief Act of 1997
In
July 1997, Congress established the Taxpayer Relief Act (TRA97) to help families
meet the cost of post secondary education. This act established several tax
credits that can reduce the amount of federal income tax for returns filed in
1999 and later.
Hope Scholarship
Tax Credit
Beginning January 1, 1998, the Hope Tax
Credit may be claimed for qualified tuition and related expenses of each student
in a taxpayer’s family (the taxpayer, the taxpayer’s spouse or an eligible
dependent) enrolled in their first two years of post-secondary education. The
student must be enrolled at least halftime in a program leading to a degree,
certificate or other recognized educational credential. The amount that may be
claimed as a credit is generally equal to:
- 100% of the first
$1,000 of your qualified tuition and related expenses, plus
- 50% of the next
$1,000 of your qualified related expenses.
The maximum credit a taxpayer may claim for
each taxable year is $1,500 multiplied by the number of students in the family
who meet the criteria. The tax credit may be used for payments made after
January 1, 1998, for academic periods beginning on or after January 1, 1998.
Payments made prior to January 1, 1998 may not be claimed for the tax
credit.
National Computer Systems will be providing
the 1098-T forms to students enrolled in the Diploma and Degree Program. A
customer representative will be available to answer general questions 8 a.m. to
8 p.m. Monday to Friday at 1-800-223-0043.
IRS question and answer site
for Hope Scholarship Tax Credit
Lifetime Learning
Credit
The Taxpayer Relief Act will
provide Lifetime Learning Credit for qualified tuition and fees for eligible
students for post secondary education, including any course of instruction to
acquire or improve job skills. This tax credit becomes effective July 1, 1998
for education furnished in academic periods beginning after that date. The
amount you may claim as a credit is equal to 20% of your first $5,000 for tax
years beginning before 2004 and for first $10,000 thereafter for out of pocket
qualified tuition and expenses. The maximum credit you may claim for 2003 is
$2,000.
If you are claiming a Hope
Tax Credit none of the expenses may apply to the Lifetime Learning Credit. The
Lifetime Learning Tax Credit is not applicable for classes that were completed
prior to July 1, 1998 or for money paid in 1997.
National Computer Systems
will be providing 1098-T forms to students enrolled in the Diploma and Degree
Program. A customer service representative will be available to answer general
questions from 8 a.m. to 8 p.m. Monday through Friday at 1-800-223-0043.
IRS questions and answers site
for Lifetime Learning Tax Credit
Student Loan
Interest Deductions
Beginning January 1, 1998,
taxpayers that have taken loans to pay the cost of a qualified institution for
themselves, their spouse or their dependent may deduct interest they paid on
these student loans. For 2004, the maximum deduction each taxpayer is permitted
to take is $2,500.
The deduction is available
only for interest paid during the first 60 months of the loan period. The
interest deduction will be allowed on the payments due and made after January 1,
1998. Payments made prior to that date are not allowed.
Your lender will provide the
1098-E forms. If you have any questions call the telephone number on the 1098-E
form you receive from your lender or servicer.
IRS question and answer site
for Student Loan Interest Deduction
More Information
If you are eligible for any
of these tax credits, please refer to tuition statements you received from the
Business Office for the calendar year of 2004. This would include enrollment
periods of Spring 2004 (January – May) and Fall 2004 (September – December). If
you require this information, you can fax your request to 617-369-3131, e-mail
bursar@smfa.edu or call the Business Office
at 617-369-3631.
When faxing or emailing your
request, please include your name, student name, social security number, mailing
address, telephone number, and enrollment period. Neither the Bursar, the staff
in the Business Office or any office in the School will be able to provide tax
advice.
This information was
prepared to advise you about the educational tax benefits available to students.
This is not an official tax document; it is our interpretation and understanding
of the Act. Please seek information from one of the free information sources
provided for you below, contact your accountant, or seek assistance from a tax
consultant, attorney or other available sources.
Additional tax information
may be found at the following Web sites:
Or by calling the following
phone numbers:
- IRS at 1-800-829-1040. Ask for Publication 970 – Tax
Benefits for Higher Education.
- National
Computer Systems 1-800-223-0043
