• What is the Taxpayer Relief Act of 1997?
• What is this site for?
• How do I use this site?
• What is the Hope Scholarship Credit?
• What is the Lifetime Learning Credit?
• What is a 1098-T?
• Who do I contact for more information?
• What expenses qualify for the Hope and Lifetime Learning Tax Credit?
• What institutions are eligible?

The Taxpayer Relief Act of 1997 passed a number of reforms to the current tax code. Importantly, this act creates additional opportunities for a postsecondary education by making two new tax credits available for students, taxpayers, and families. The Hope Scholarship Credit and Lifetime Learning Credit are tax credits that may be claimed for out-of-pocket tuition and fee expense paid for a postsecondary education.

In order to determine eligibility for these new tax credits, postsecondary institutions are required to send student enrollment data to the Internal Revenue Service (IRS). Additionally, institutions must provide students a copy of this data by sending a 1098-T form to all students involved in the IRS reporting process.

This site is designed to assist students, taxpayers, and institutions in the reporting of data required by the Taxpayer Relief Act of 1997. The Taxpayer Relief Act of 1997 makes two new tax credits available for postsecondary education, and this site is designed to assist students, families, and institutions in working with the information the Internal Revenue Service (IRS) requires to calculate these credits.

If you're a student, parent, or taxpayer, return to the Home Page and click the Student Services button. To log in to the database, you will need to enter your school's OPE ID code, your Social Security Number, Name ID, and PIN. If your school has chosen to provide the information to you, the OPE ID and PIN can be found on your 1098-T form.

If you're a school working with the student data your instution is reporting to the IRS, return to the Home Page and click the School Services button to log in using your assigned User ID and Password.

Enrollment in this web site is optional for institutions, so it is possible your school has not signed up for this service. If that is the case, you will not be able to log in to the database, but we invite you to read through the FAQs and to use the links on this site to gain additional information on the Taxpayer Relief Act, Hope Scholarship Credit, Lifetime Learning Credit, and how Vangent Taxpayer Relief Act Services can assist you with IRS reporting requirements and 1098-T mailing responsibilities.

The Hope Scholarship Credit is actually not a scholarship, but a tax credit designed to help make the first two years of college or vocational school affordable. Students may claim up to 100% of the first $1,000 of tuition and required fees and a 50% credit on the second $1,000, for a maximum possible tax credit of $1,500. This credit may be claimed for any paid tuition and required fees minus grants, scholarships, or other tax-free educational assistance and will be available for payments made after December 31, 1997 for college enrollment after that date.

This credit is phased out for joint tax filers who have between $87,000 and $107,000 of adjusted gross income, and for single tax filers who have between $43,000 and $53,000 of adjusted gross income. The credit may be claimed for any student enrolled in their first two years of college or vocational school and who is enrolled at least half-time in a degree or certificate program for any portion of the year. The taxpayer can claim a credit for either his or her own tuition expense or for the expense of his or her spouse or dependent children. Both the Lifetime Learning Credit and the Hope Scholarship Credit can be claimed by one family if separate members of the family are eligible for each credit within one year.

The Lifetime Learning Credit may be claimed by college juniors, seniors, graduate and professional degree students, and students enrolled at a vocational school. Students or parents may claim a 20% tax credit for the first $10,000 of tuition and required fees paid each year for a maximum possible credit of $2,000 per year. The Lifetime Learning Credit can be claimed for tuition and required fees minus any grants, scholarships, or other tax-free educational assistance. The maximum credit is determined on a per-taxpayer (family) basis, regardless of the number of post-secondary students in the family.

This credit is phased out for joint tax filers who have between $87,000 and $107,000 of adjusted gross income, and for single tax filers who have between $43,000 and $53,000 of adjusted gross income. Both the Lifetime Learning Credit and the Hope Scholarship Credit can be claimed by one family if separate members of the family are eligible for each credit within one year.

The 1098-T form contains data elements that the IRS will find helpful in calculating a student's eligibility for the Hope Scholarship Credit and Lifetime Learning Credit. The 1098-T contains a combination of student personal data, such as name, address, and SSN, and institutionally-provided enrollment data, such as status as a graduate or undergraduate student, along with whether the student was enrolled at least half-time during the school year. The IRS will use this data to help determine who is eligible for the educational tax credits.

The IRS Home Page is an excellent source for tax information, forms, and advice.

If you wish to see the entire text of the Taxpayer Relief Act, follow the link to this page found on our Resource Page and choose IRS Publication 970.

Visit the IRS Hope Scholarship Credit Page to get answers to frequently asked questions about the Hope Scholarship Credit. The page is on the IRS website.

Visit the IRS Lifetime Learning Credit Page to get answers to frequently asked questions about the Lifetime Learning Credit. The page is on the IRS website.

The Hope Scholarship Credit and Lifetime Learning Credit are designed to help students and families cope with the cost of a college education. For further information on other forms of assistance for a postsecondary education, follow the Financial Aid Information link.

TaxWeb is an extensive reference for both state and federal tax regulations.

The Families' Guide to the 1997 Tax Credits for Education is located on the Department of Education website and it discusses the eligibility and reporting requirements for the Hope Scholarship Credit and Lifetime Learning Credit.

Qualified expenses are tuition and fees that are required for enrollment at an eligible educational institution. Expenses that do not qualify are books, room and board, student activities (unless mandatory for enrollment), athletics (unless required as part of degree program), insurance, equipment, transportation, or other similar expenses.

An eligible educational institution generally includes any accredited public, nonprofit, or proprietary postsecondary institution eligible to participate in the student aid programs administered by the U.S. Department of Education.