In August 1997, the U. S. Congress passed the Taxpayer Relief Act of 1997 (TRA ’97). This act creates several new Federal income tax benefits for families who are saving for higher education, already paying higher education costs or are repaying student loans. Specifically, TRA ’97 provides for a Hope Scholarship credit, a Lifetime Learning credit and a student loan interest deduction.

• Hope Scholarship Credit
• Lifetime Learning Credit
• Student Loan Interest Deduction
• Required Reporting
• Student Information
• 1098-T
• Questions

This credit may be claimed for qualified tuition and related expenses paid on behalf of EACH student in the taxpayer’s family who was:

• enrolled at least half-time for at least one academic period beginning during the year at an eligible institution,
• enrolled in the first two years of post-secondary education and
• enrolled in a program leading to an undergraduate degree or other recognized credential.

Characteristics include:

• a maximum credit per student of $1,800 for year 2008 (100 percent of the first $1,200 of qualified tuition, plus 50 percent of the next $1,200),
• gradual credit reduction starting at modified adjusted gross income (MAGI) of $48,000 to $58,000 ($96,000 to $116,000 for married taxpayers filing jointly, if married, taxpayers must file a joint return)

This credit may be claimed for the qualified tuition and related expenses paid by a taxpayer’s family who was:

• enrolled in undergraduate, graduate, or professional degree courses or
• enrolled in any course of instruction to acquire or improve job skills and
• receiving instruction from an eligible institution.

Characteristics include:

• a maximum credit of $2,000 for 2008 for all students enrolled in eligible educational institutions
• gradual credit reduction at modified adjusted gross income (MAGI) of $48,000 to $58,000 ($96,000 to $116,000 for married taxpayers filing jointly, if married, taxpayers must file a joint return)

This deduction may be claimed for interest payments on qualified federal and private education loans if:

• the loan is used soley for qualified educational expenses, such as tuition, fees, room, board, books, supplied, equipment, and other necessary expenses, such as transportation, and
• the loan is not a from a related person or made under a qualified employer plan.

Characteristics include:

• a maximum deduction of $2,500,
• limited deduction starting at modified adjusted gross income (MAGI) of $70,000 ($145,000 for married taxpayers filing jointly, if married, taxpayer must file a joint return),
• deduction is available for interest payments made during the remaining period of your student loan, and
• no requirement to itemize deductions on Schedule A (Form 1040).

Reporting information:

By January 31, Radford University’s (RU) third party vendor, Campus Partners, will be reporting interest paid by you on IRS Form 1098-E. For Federal Perkins, Federal Nursing and State Student Loan questions, contact Campus Partners at 1-800-334-8609.



Starting in 1998, all eligible educational institutions or their third party vendors are required to submit Form 1098-E (Student Loan Interest Statement) and/or Form 1098-T (Tuition Payment Statement) to the IRS and to the student at the end of each tax year.

Form 1098-E will indicate the amount of student loan interest paid during the tax year.

Form 1098-T will indicate the amounts billed for qualified tuition, adjustments to qualified tuition for a prior year, scholarships or grants, adjustments to scholarships or grants for a prior year, whether the qualified tuition includes amounts for an academic period beginning January-March 2006, whether the student was enrolled at least half-time for at least one academic period during the tax year and whether the student was enrolled in graduate level courses.



The information filed with the IRS must contain the student’s Social Security Number (SSN). The SSN and the primary address on RU’s database will be used for reporting purposes. Incorrect information must be corrected at the Office of the Registrar.

Students will receive a supplemental form which contains financial data. The form is meant to assist them with their tax return preparation but should not be considered tax advice. The data will include qualified tuition, taxable and non-taxable tuition waiver, scholarships, and cash/loan payments received for the calendar year.

RU has contracted with two third party vendors, ACS Data Corporation and Tax Credit Reporting Service (TCRS), to mail and print 1098-T returns and to handle all your questions. If you have questions, please contact them toll-free at 1-877-467-3821. For calendar year 2008, the 1098-Ts will be mailed by January 31, 2009. Information reported for tax years 2006 and 2007 is also available on the student web site mentioned below.

The student may view and/or print a copy of their 1098-T form by logging onto the following web site. The date that the information will be available on the web site for the current tax reporting year will change from year to year but usually will be available by the last week in January. Since the IRS does not require this form be attached to your tax filing, the copy you print from this web site is adequate documentation for your tax records.



When you get to the student web site mentioned above, go to "Access My Record," then furnish the required information to access or print a copy of your 1098-T and the Supplemental Form. You will also be able to access the underlying detail for the financial transactions on the Supplemental Form. If you experience any problems accessing your account, please call the Customer Service Center toll-free at 1-877-467-3811.

To claim the Hope and/or Lifetime Learning credits, IRS Form 8863 must be used to calculate and claim the credits. The form is available on the IRS web site, IRS Form 8863.

This information is not intended as legal or tax advice. Individuals should obtain IRS Publication 970, Tax Benefits for Higher Education, or contact a tax practitioner about personal income tax situations

• HOPE AND LIFETIME LEARNING CUSTOMER SERVICE
  Toll Free 1-877-467-3821
• Student Loan Deduction
  Toll free 1-800-3348609
• Internal Revenue Service
  Toll Free 1-800-829-1040