|
Home > College Offices > SFS Updates > Tax Information
Tax Information and Benefits
SFS Updates
|
Contacts
|
Forms & Deadlines
The American Recovery and Reinvestment Act (ARRA) of 2009
The American Opportunity Tax Credt is worth up to $2,500 of the cost of tuition and related expenses. You can claim it on your 2009 and 2010 tax returns.
This new credit modifies the existing Hope Credit for tax years 2009 and 2010, making the Hope Credit available to a broader range of taxpayers, including many with higher incomes and those who owe no tax. It also adds required course materials to the list of qualifying expenses and allows the credit to be claimed for four postsecondary education years instead of two. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.
The full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels. These income limits are higher than under the existing Hope and Lifetime Learning Credits.
Students and parents are urged to save their receipts and cancelled checks in anticipation of claiming this credit on their 2009 tax returns.
Further information can be found by visiting www.irs.gov/recovery. Also see Publication 970, Tax Benefits for Education. Taxpayer Relief Act of 1997 (TRA 97) Form 1098-T The Taxpayer Relief Act of 1997 (TRA 97) provided new tax benefits (the Hope Scholarship Credit, the Lifetime Learning Credit, and a deduction for student loan interest) for taxpayers who are paying for certain post-secondary educational expenses.
As part of the TRA 97 legislation, eligible educational institutions were required to submit certain information about their students on a Form 1098-T. Beginning in tax year 2003, these institutions were also required to report amounts pertaining to qualified tuition and related expenses, as well as scholarships and/or grants. Schools choose to use either Box 1 (Payments Received) or Box 2 (Amounts Billed). MHC uses Box 2.
We hope that the 1098-T Frequently Asked Questions will assist you. Any additional questions, please call Deborah Johnson, at 413-538-2253.
Any questions related to your eligibility for tax benefits should be directed to your tax advisor or the Internal Revenue Service. Mount Holyoke College is not in a position to give any tax advice or tax preparation assistance.
All offsite links and documents below are provided as a courtesy and do not imply endorsement by Mount Holyoke College.
Further information on any of these tax benefits may be found from the IRS Publication 970. You may also find the following pdf resources helpful.
Mount Holyoke College has contracted with Educational Computer Systems, Inc. (ECSI) to complete the processing of Form 1098-T forms.
|
