Tax credit

Hope Scholarship / Lifetime Learning

Two tax credits, the Hope Scholarship and the Lifetime Learning Credit, took effect in 1998 to help families reduce out-of-pocket expenses for tuition and certain expenses paid to an institution that participates in the federal student aid programs.

• The Hope Scholarship provides a credit of up to $1,500 for a student who is enrolled at least half-time in one of the first two years of a postsecondary education.
  
  
• The Lifetime Learning Credit provides a credit up to $1,000 per year for a student taking courses, including graduate-level degree work. This credit can be claimed for as long as the student is enrolled in an eligible institution.

If you, your parents or guardian are paying for higher education costs yourself or for members of your family and if your (or your parents' or guardians' who claim you on their tax return) 2007 adjusted gross income (found on your 2006 IRS Form 1040, line 34 or IRS Form 1040A, line 19) is less than the income limitations below, you may qualify for Hope Scholarship and Lifetime Learning tax credits.
To qualify, your adjusted gross income (AGI) must be:

• Equal to or less than $50,000, if you are single.
  
  
• Equal to or less than $100,000, if you are married and file a joint return.

The tax credit amounts are determined by the amount you paid for eligible tuition and related expenses and your income. Bristol Community College cannot determine if you qualify for one of these tax credits or the amount of the credit due you. If you believe you might qualify, you should obtain IRS Publication 970 and IRS Form 8863 and review the criteria carefully. To obtain copies call 1-800-TAX-FORM or go to http://www.irs.ustreas.gov/prod/forms_pubs/ on the internet.

IRS Publication 970 explains which tuition and fee expense qualify and which payments qualify for tax credits. To receive either tax credit, you must account for and document the amount you have paid for tuition and expenses on IRS Form 8863 and file it with your 1998 federal tax return. To calculate your tax credit, consult IRS Publication 970 or your tax professional. You can determine the amounts from your own records of the tuition bills you paid in 1998 and your receipts.

Bristol Community College provides IRS Form 1098-T to document your enrollment and whether or not you are a graduate student. Keep this form with your tax records.
Bristol Community College's contact number is printed on your IRS Form 1098-T. You may call this number if your questions are not answered by IRS Publication 970 and your own records.

For more information via the Web concerning the Hope Scholarship and Lifetime Learning Credits, click here.