Taxpayer Relief Act of 1997 (Education Tax Credit) Information

Santa Rosa Junior College

 

1098-T forms (Tuition Payments Statement) were mailed to SRJC students prior to January 31, 2006 for the 2005 tax year.  You will need to file Form 8863 (Education Credits) to claim the education tax credits.


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TAXPAYER RELIEF ACT OF 1997 (EDUCATION TAX CREDIT)

In accordance with the Taxpayer Relief Act of 1997, beginning in 1998, individuals may be able to claim the new tax credit for higher education costs. These are the Hope Scholarship Tax Credit and the Lifetime Learning Tax Credit.

Hope Scholarship Tax Credit:

Applies to students who are enrolled at least half time in their first or second year of undergraduate study in a program leading to a degree. A maximum of $1,500 per year of qualifying tuition expenses may be claimed as a credit against taxes owed by taxpayers who meet defined income restrictions. Hope Scholarship Tax Credit can be claimed for an eligible student or dependent student who meets the following requirements:

  1. Is enrolled in one of the first two years of post secondary education (generally the freshman or sophomore years of college).
  2. Is enrolled in a program that leads to a degree, certificate, or other recognized educational credential.
  3. Is taking at least one-half of the normal full-time work load (6 units or more) for his or her course of study for at least one academic period (Spring, Summer, Fall) during the calendar year, and
  4. Is free of any felony conviction for possessing or distributing a controlled substance.
Lifetime Learning Tax Credit:

Individuals may be able to claim a Lifetime Learning Tax Credit of up to $1,000 for the total qualified tuition and related expenses paid during the tax year for all eligible students or dependent students who are enrolled in eligible educational institutions.

  1. The Lifetime Learning Tax Credit is not based on the students work load. It is allowed for one or more courses.
  2. The Lifetime Learning Tax Credit is not limited to students in the first two years of postsecondary education.
  3. There is no limit on the number of years for which the Lifetime Learning Tax Credit can be claimed for each eligible student.
  4. The amount you can claim as a The Lifetime Learning Tax Credit does not vary (increase) based on the number of eligible students for who you pay qualified expenses.