Hope Scholarship Credit and Lifetime Learning Credit

This page is to provide information to Emporia State University students and parents regarding two tax credits that were outlined under the Taxpayer Relief Act of 1997 (TRA97).

• The Hope tax credit is available for students who, at the start of the year, have not completed their second year of post secondary education. The credit provides up to $1,500 (100% of the first $1,000 in qualified tuition and related expenses, and 50% of the next $1,000) per student. To be eligible for the Hope tax credit, the student must be enrolled at least half time for at least one academic period. There are other provisions and requirements that should be reviewed before claiming the Hope tax credit on a tax return. A helpful link is provided below.

• The Lifetime Learning tax credit is a less restrictive tax credit.  Up to $2,000 (20% of the first $10,000 of qualified tuition and related expenses) can be claimed per family (the Hope credit is per student.) While the Lifetime Learning tax credit is more broadly applicable in regard to post secondary education, it is still important to review the specifics of the credit before claiming it on a tax return. A helpful link is provided below.

Refer to receipts to determine the amount of qualified tuition and fees paid.

1098-T forms are mailed each year in late January. Do not attach the Form 1098-T to the tax return. Keep this form with tax documentation.

The credit must be taken in the year the eligible expenses are incurred.

To claim the credit, complete and return IRS Form 8863 with the tax return. No other documentation or support paperwork is required to be attached to the tax return for this credit.

If the taxpayer is married with a combined adjusted gross income of more than $103,000, or single with an adjusted gross income of more than $51,000, then the taxpayer will not qualify for either tax credit in 2003. Check with your tax advisor for subsequent years.

Married taxpayers must file jointly to qualify for either tax credit.

Further information can be obtained at the following link:

http://www.irs.gov/pub/irs-pdf/p970.pdf

To obtain specific information about an Emporia State University student account, contact Student Financial Services at 620-341-5340.

Emporia State University may not provide tax or legal advice and, therefore, cannot determine if the taxpayer will qualify for either credit. Consult a tax advisor, or contact the IRS at 1-800-829-1040.

Last Updated June 28, 2007