This special bulletin is drafted to inform you of
the higher education tax incentive recently enacted by the Taxpayer
Relief Act of 1997, which provides tax credits for qualified educational
expenses. We encourage you to seek professional advice
with a tax accountant regarding your particular situation.
Questions concerning these tax credits may be directed to the
IRS Office of Public Liaison at your local area. More indepth
information are available at the following websites:
Beginning January 1, 1998,
taxpayers may be eligible to claim a non-refundable Hope Scholarship
Credit against their federal income taxes. The Hope Scholarship
may be claimed only for qualified tuition and expenses
that a student is "required to pay" to attend
an eligible institution and must be directly related to a course
of study. Therefore, expenses associated with student
activities, insurance, athletics (unless it is part of the degree
program), room and board, etc., are not allowed.
At this point, the following eligibility requirements
and information as we understand it:
The first time taxpayers will be able to claim the
credit is in 1999 when they file their 1998 tax returns, since
the Hope Scholarship Tax Credit is applicable for fees or tuition
paid beginning January 1, 1998.
Students whose fee payment priority due date is
in the month of December 1997 may opt to apply for an installment
payment plan. For further information
or to arrange a special installment payment, please contact the
Bursar's Office at (415) 338-1281.