The Taxpayer Relief Act allows a tax credit to be claimed for out-of-pocket payments made to Marist College during 2007 for tuition and certain fees. The IRS requires that we provide a 1098-T statement to you for your use in completing ITD Form 8863.
The 1098-T statement will include all charges billed during the 2007 tax year, depending on the date of billing. Marist College has elected to provide charges billed versus payment as outlined by the Federal Government. Therefore, 2007 January/Spring term charges may not be included, due to billing date. However, 2008 January/Spring term charges may be included, if billed prior to December 31, 2007.
We recommend that you refer to that information to assist you in determining the amount of credit which may be claimed on your behalf. This information should not be misinterpreted as tax advice. The amounts and calculations used to determine the credit are the decision of the taxpayer after consideration of relevant IRS regulations, Form 8863, and, perhaps, the advice of a tax consultant.
| A detailed listing of qualified charges, payments, grants, and scholarships is available at our website, https://faculty.web4.marist.edu/ahomepg.htm. Please Enter Student Services to review your IRS Form 1098-T information located under the Student Records section. |
Information about the Lifetime Learning Credit is available from the IRS at http://www.irs.gov/publications/p970/ch03.html
Information about the HOPE Scholarship Credit is available from the IRS at the at http://www.irs.gov/publications/p970/ch02.html
The Hope Scholarship is a tax credit available for the first two years of college or postsecondary education. Students or parents who pay tuition and related expenses for attendance at least half-time in a degree-granting program, may be eligible for this credit. Unlike a scholarship or a tax deduction, the Hope Scholarship is a tax credit, and can be subtracted directly from the total federal tax on a tax return.
The HOPE Scholarship Credit offers a tax reduction. With this tax credit, you can receive up to $1,650 per eligible student for a taxpayer paying education-related expenses during a student's first two years of college. The credit applies to net tuition and required fees (less scholarship and grant aid).
There are a few factors and income limitations to consider when figuring out your savings amount. For example, for tax year 2007, the amount a taxpayer may claim as a HOPE Credit is reduced when modified adjusted gross income is between $47,000 and $57,000 per year (or $94,000 to $114,000 for married taxpayers filing jointly). If the modified adjusted gross income is $57,000 or more ($114,000 or more for married taxpayers filing jointly), the taxpayer may not claim the credit.
An eligible parent may claim the credit only for the tuition of a dependent child. Generally, a parent may claim his/her unmarried child as a dependent on a tax return if: (1) the parent supplies more than half the child's support for the taxable year and (2) the child is under age 19 or is a full-time student under age 24.
Eligible parents or students request the Hope Scholarship credit on their tax returns when filing their 2007 tax returns (usually filed by April 15, 2008). Tuition paid in 2007 for classes begun in 2007 will qualify for the tax credit. Tuition paid in 2006 does not qualify.
Tuition paid out-of-pocket using cash, credit card or check is eligible. Tuition paid with proceeds from a loan, including Federal Stafford and PLUS loans, is also eligible.
The Lifetime Learning Credit is a valuable benefit of up to $2,000 per family paying for education-related costs. Instead of benefiting first-year and second-year college students, this credit is designed to provide financial assistance to college juniors and seniors, graduate and professional degree students and adults who want to return to school or update their skills or change careers. Unlike the HOPE Scholarship Tax Credit, the Lifetime Learning Credit is calculated on a per-taxpayer (family) basis, regardless of the number of post-secondary students in the family.
Information about the tax benefit for the interest on educational loans is available at http://www.irs.gov/publications/p970/ch04.html
If your modified adjusted gross income (MAGI) is less than $70,000 ($140,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2007.
The amount of your student loan interest deduction for 2007 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $55,000 and $70,000 ($110,000 and $140,000 if you file a joint return). You cannot take a deduction if your MAGI is $70,000 or more ($140,000 or more if you file a joint return).
The student loan interest deduction is taken as an adjustment to income. You may claim this deduction even if you do not itemize deductions on Schedule A.
Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntary interest payments.
