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University of Hawai'i |
(808) 956-8856 Telephone |
For Immediate Release: |
December 23, 1998 |
Contact: JoAnn Yamada, Financial Aid Specialist, 808-956-6066 Donnë Florence, PIO, 808-956-3441 |
UH Financial Aid Services offers important information on tax credits for students and their parents In August 1997, President William Clinton signed the Taxpayer Relief Act of 1997 (TRA 97) into law. TRA 97 provides many new tax benefits for persons who are paying higher education costs for themselves and members of their family. Two of these benefits are the Hope tax credit and the Lifetime Learning tax credit. These tax credits can be claimed to offset 1998 federal income taxes for eligible students or their parents.
The Hope tax credit targets students who are enrolled at least half-time and who are in their first two years of postsecondary education. The Lifetime Learning tax credit provides assistance to those who do not qualify for the Hope tax credit and represents the first major federal program of financial support for continuing education students.
For every student who may qualify for the educational tax credits, the institution is required to file information with the IRS and to the student. This information is provided to the student on Form 1098-T. The University of Hawai'i will be mailing the 1098-T forms at the end of January.
Each student enrolled for credit courses during Spring 1998, Summer 1998 or Fall 1998 should receive a 1098-T form. As clarified by the IRS, postsecondary institutions are not required to send 1098-T forms to nonresident alien students or to students enrolled only in non-credit courses. The University of Hawai'i will not send 1098-T forms to those students. The 1098-T form will reflect enrollment at all ten campuses of the University of Hawai'i. In other words, a student who attended more than one UH campus during the 1998 calendar year will receive only one 1098-T form from the University of Hawai'i.
As required by the Internal Revenue Service, the University will disclose the following information on Form 1098-T: 1. Name, address, and taxpayer identification number (TIN) of the institution. 2. Name, address, and TIN of the student. 3. Indication of whether the student was enrolled at least half-time during any academic period beginning in 1998. 4. Indication of whether the student was enrolled exclusively in a program leading to a graduate degree, certificate, or other graduate credential.
Families may claim only the amount of qualified tuition and related expenses minus the amount of any nontaxable educational assistance such as grants and scholarship. The university is not responsible for reporting to the student the amounts of qualified expenses paid nor grants/scholarships received by the student. Students or parents should consult with their tax advisers regarding the amount that can be claimed.
More information about the Hope and Lifetime Learning tax credits can be obtained from the following sources: · IRS Form 1040 Instructions · IRS Publication 970, "Tax Benefits for Higher Education" · IRS TeleTax, telephone number 1-800-829-4477 · U.S. Education Dept. Families Guide to the 1997 Tax Cuts for Education · World Wide Websites: http://www.irs.gov http://www.ifap.ed.gov http://www.hawaii.edu/StudentAffairs |
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