Hope Scholarship Credit and Lifetime Learning Credits

In an effort to make college more affordable,

Congress included in the Taxpayer Relief Act of 1997 (TRA97),

the Hope Scholarship Tax Credit and the Lifetime Learning Tax Credit.

• In box two of form 1098-T, we are reporting your qualified tuition and fees billed from January 1, 2007 to December 31, 2007 net of any refunds or reimbursements.
• In box four , we are reporting any adjustments made for a prior year.
• In box five, we are reporting grants and scholarships disbursed during calendar year 2007.
• In box six , any adjustments to scholarships and grants for a prior year.

You will need to rely on your own records to identify qualified tuition and fees paid. The detail supporting the amounts reported for 2007 on the 1098-T is available behind your web for student login and pin under student records. The URL is:http://www.wou.edu/stubanweb

The academic terms included in the dollar amounts reported on the 1098-T are: Winter 2007 (200602), Spring 2007 (200603), Summer 2007 (200700), Fall 2007 (200701) and Winter 2008 (200702) if applicable. If winter 2008 is included, box seven will be marked. Again, you will need to determine if all or a portion was paid during calendar year 2007.

Hope Scholarship tax credit: The Hope Scholarship provides tax credits to taxpayers that pay qualified tuition and required fees for attending college on at least a half-time basis. This credit is designed to offset tuition costs incurred during the first two years of college. It may only be used two years for any particular student. This credit is available for tuition and required fees paid during 2007 minus certain grants, scholarships, and other tax-free educational assistance. The maximum credit is $1,650 per student.

Lifetime Learning tax credit: Like the Hope Scholarship credit, the Lifetime Learning provides tax credits to taxpayers that pay qualified tuition and required fees at an eligible institution. It differs from the Hope Scholarship in that the student is not required to be half time. A family may claim a credit for up to $2,000 per tax year. The Lifetime Learning tax credit is available for tuition and required fees paid during 2007 less certain grants, scholarships and other tax free educational assistance.

Both of these credits are limited by taxpayer income and are non-refundable in that they only reduce tax liability. Anyone planning to make use of the credit will need much more specific information than is provided above.

Listed below are some sources of more detailed information:

• Oregon IRS phone number: 1-800-829-1040
• Form 8863 and supporting instuctions are available on the World Wide Web at:  http://www.irs.gov/pub/irs-pdf/f8863.pdf
• Parent and Student Guide to Federal Tax Benefits for Tuition and Fees: http://www.nasfaa.org/annualpubs/taxbenefitsguide.html#tuitiondeduction

Western Oregon University employees cannot offer tax advice. However, if you have questions about the information provided, you may contact a Western Oregon University representative at (503) 838-8202.

You should be aware that the law creating these credits requires the University to provide the name and social security number of all enrolled students to the IRS. It is important that the information be accurate. Please review the social security number on your 1098-T for accuracy. If incorrect you will need to provide a copy of your social security card to the Business Office.

Business Office Western Oregon University
345 N. Monmouth Ave.,
Monmouth, OR 97361
503-838-8201
e-mail: BusinessOffice@wou.edu