THE TAXPAYER RELIEF ACT – EDUCATION TAX CREDITS
New
Tax Relief Info.pdf
(Includes new information for 2009/10)
The Taxpayer Relief Act of 1997 (TRA 97) provides many tax benefits for persons paying higher education costs for themselves and members of their families. Benefits include education tax credits, and education IRA, withdrawals from traditional IRAs for higher education expenses, and a deduction for interest paid on student loans.
The Hope and Lifetime Learning Credits, part of the Taxpayer Relief Act of 1997, allow eligible taxpayers to claim a tax credit for qualified tuition and related expenses against their federal income tax.
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Some important points to consider:
• If you are claimed as a dependent on your parent’s (or other taxpayer’s) income tax returns, it is very important that you give your 1098T form to them. A student who is claimed as a dependent cannot claim either tax credit on his or her own tax return.
• The information shown on this 1098T form is related to the calendar (tax) year. For instance, the qualified expenses shown are those that you paid during the tax year shown on the form.
• Qualified expenses paid at SDSU do NOT include the Health Services Fee, paid as part of your registration fee. The amount shown on the 1098T form is the amount of your registration fee, less the Health Services Fee.
• If a third party or other agency paid the qualified expenses shown on the 1098T form for you, you may not be able to claim the tax credit. Check with the IRS or your tax preparer.
• Other qualified expenses you may have paid during the tax year that are not included on your 1098T form, but may be claimed as part of the tax credit, include:
Application for Admission Fee paid to SDSU (if you subsequently enrolled)
Graduation Services Fee
Credential Evaluation Fee
Miscellaneous Course Charges paid to SDSU (such as Nutrition and Art-Ceramics
Clay) and mandatory lab fees
• When preparing your tax returns, always check with a tax professional or the IRS to make sure you have the latest revisions in IRS regulations. Use IRS form 8863 to claim the credit.
Where to get more information:
Access the web for forms and information at www.irs.ustreas.gov (instructions for calculating the credit can be found on IRS Form 8863 and in IRS Publication 970).
Call the IRS at 1-800-829-1040 with tax questions (or check the phone book for a local number).
Check your local library or post office.
Call SDSU for questions about information on your 1098T/Supplemental form at 619-594-5253 or check the web at www.sdsu.edu/sas. Click on On-line Student Account Services
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Information on this Web site is subject to change without notice. Every effort is made to ensure that information is current and accurate. The statements found on this Web site are for informational purposes only.
This page was last updated April 12, 2012