The Taxpayer Relief Act of 1997 (Act) established a number of tax benefits that may have an impact on the federal income tax liability of students and their families. To help the Internal Revenue Service (IRS) monitor eligibility for these tax credits, the Act requires universities to provide certain information about their students to the IRS. A brief summary of the provisions that may apply to your attendance at UCLA follows:
Hope Scholarship Tax Credit is a nonrefundable tax credit of up to $1,500 for qualified tuition and fees paid by or on behalf of a student. The credit is generally available to students in their first two years enrolled at least half time in coursework leading to a recognized degree or certificate.
Lifetime Learning Credit is a nonrefundable credit equal to 20 percent of the first $5,000 of qualified tuition and fees paid by or on behalf of a student in years in which the Hope Scholarship Credit is not claimed. The credit is generally available for students enrolled in course work leading to a recognized degree or certificate. Individuals enrolled in course work to acquire or improve job skills may also be eligible for the Lifetime Learning Credit.
Student Loan Interest Deduction is a federal income tax deduction of up to $1,000 in interest paid on loans incurred to pay qualified education expenses.
As required by law, UCLA will report to the IRS the identity of students who have paid educational fees that may be eligible for the Hope Scholarship or Lifetime Learning Credit. In early February 2008, students will receive a corresponding report (1098-T). Any questions regarding information printed on this form should be directed to AFSA, the University of California's education tax credit reporting service, at their toll free number, 1-877-467-3821, or see www.1098-T.com.
To find out if you qualify for benefits under these or other provisions of the Taxpayer Relief Act, please consult a tax advisor or call the Internal Revenue Service. The University of California is not authorized to respond to tax questions.
More detailed information is on the Department of Education Web site.