Taxpayer Relief Act of 1997
Frequently Asked Questions
Explanation of 1098T Form
In 1997, the United States Congress passed The Federal Tax Relief Act.
This ACT may provide an opportunity for tax savings through the Hope
Tax Credit and Lifetime Learning
Tax Credit and the Student Loan Interest Deduction. The Hope Tax Credit
is a maximum $1,650 tax credit which is available for students in either
the first or second year of post-secondary education when the tax year
begins. The student must be enrolled at least half-time and only qualified
expenses incurred are eligible. The Lifetime Learning Credit is calculated
on a per-family, rather than a per-student basis and the maximum credit
is $4,000 per year for each qualifying family.
The Internal Revenue Service requires all eligible educational institutions
to report the amount billed for qualified tuition and related expenses
during the calendar year for individuals enrolled for any academic period
with this year. Qualified Tuition and Related Expenses are defined as
tuition and fees an individual is required to pay for enrollment or attendance
at an eligible educational institution. For purposes of the Hope Tax Credit and the Lifetime Learning Credit, they do not include books, room and
board, student activities, athletics (unless the course is part of the
student's degree program), insurance, equipment, transportation fees,
or other personal, living or family expenses.
During the early part of February, the IRS 1098-T form and a Tuition
Payment Statement will be mailed to students who were enrolled at the
University of Tennessee for at least half time during the calendar year.
The 1098-T form will state whether the student was enrolled at least half
time for one semester during the calendar year, whether the student was
exclusively a professional student and the amount billed to the student.
You may also obtain this information at a website to be announced at a
later date.
If you feel you qualify for the tax credit, and did not keep copies of
your receipts or statements, copies may be obtained by logging on to the
web at http://cpo.utk.edu.
Please make certain that your permanent address is correct to ensure
prompt receipt of this important tax information. Permanent address changes
must be submitted to the Office of the University Registrar, 209 Student
Services Building.
For tax advice, please consult with your tax advisor, a CPA, or the IRS.
For further information, you may call the IRS at 1-800-829-1040 or read
more at http://www.irs.gov.
Student Loan Interest Deduction
Beginning January 1, 1998, taxpayers who have taken loans to pay the
cost of attending an eligible educational institution for themselves,
their spouse, or their dependent(s) generally may deduct interest they
pay on these student loans. The maximum deduction each taxpayer is permitted
to take increases from $1,000 in 1998, to $1,500 in 1999, $2,000 in 2000,
and $2,500 in 2001 and thereafter.
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