As an institution, we cannot provide you with tax advice. The following information is intended to inform students about the benefits and requirements contained in the Tax Relief Act (TRA) of 1997. It is based upon our understanding of the provisions contained in the law and should not be considered an official document. Students and/or parents should seek the advice of a tax consultant for specific questions concerning their eligibility.
TRA '97 added § 25A of the Internal Revenue (IRS) Code providing the Hope Scholarship and Lifetime Learning Credit. These provisions have created several new tax benefits for families who are saving for, or already paying for higher education expenses and loans. For additional information concerning these education credits, please review the IRS Publication 970, Tax Benefits for Education. Also, please consider familiarizing yourself with Instructions for Form 8863, the form used to claim education credits.
Please note Publication 970 states "When figuring an education credit or the tuition and fees deduction, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses. An institution may choose to report either payments received during calendar year 20xx (box 1), or amounts billed during the calendar year 20xx (box 2), for qualified education expenses. However, the amounts in boxes 1 and 2 of Form 1098-T might be different than the amount you actually paid and are deemed to have paid."