What is the Taxpayer Relief Act of 1997?
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 and the Lifetime Learning Credit are tax credits that may be claimed for out-of-pocket tuition and allowable expenses paid for a postsecondary education. In order to determine eligibility for these new tax credits, postsecondary institutions are required to send student enrollment and summary financial 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.
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.
The Taxpayer Relief Act of 1997 (TRA 97) provides many new tax benefits for persons who are paying higher education costs for themselves and members of their families. Among these benefits are education tax credits (Hope Scholarship and Lifetime Learning Credit) and a deduction for student loan interest. There are many tax benefits for families who are paying for higher education costs or who are repaying student loans. Most of these benefits became available in 1998 and can be claimed when you file your 2008 tax return in early 2009. Rules That Apply to the Hope Scholarship Credit and Lifetime Learning Credit The amount of each credit is determined by the amount you pay for qualified tuition and related expenses for eligible students and the amount of your modified adjusted gross income. These credits are subtracted from your tax but they are nonrefundable. This means that if the credits are more than your tax, the excess is not refunded to you. Qualified tuition and related expenses
In August 1997, United States President Bill Clinton signed a tax-reform bill meant to balance the US budget and make massive changes to the economic policy of the federal government. It was passed by a large majority of the United States Congress, receiving a 90% majority in the House of Representatives and a 92% majority in the Senate. The Taxpayer Relief Act of 1997 One of the largest changes made by the Taxpayer Relief Act of 1997 was a major reduction in capital gains taxes. Capital gains are the profit made by selling real estate, bonds or stocks. Under the new policy, sellers in the highest tax bracket would be taxed 20%, down from 28%, while people in the 15% tax bracket would now be charged only a 10% tax. The capital gains cut was meant to stimulate economic growth by encouraging people to sell more frequently, and increase tax revenues as a result of the higher rate of selling. Another important feature of the Taxpayer Relief Act of 1997 was the child and education tax credi
The Taxpayer Relief Act of 1997 (TRA97) allows taxpayers who pay qualified tuition and related expenses to an eligible educational institution to claim a Hope Scholarship or Lifetime Learning Credit against their federal income tax liability. What are the Hope Scholarship and Lifetime Learning Credits? The Hope Scholarship is a tax credit for eligible students, enrolled at least half-time (6 credits), as first or second year students at an eligible institution. The maximum credit is up to $1500 per eligible student. The Lifetime Learning Tax Credit is available for all years of postsecondary education and for courses to acquire or improve job skills. This credit is available for an unlimited number of years and available for one or more courses. The maximum credit is up to $2000 per return. Note: You may only elect to claim one of the tax credits per year. Who is eligible for a 1098T form? All Pace University students who incurred qualified tuition and fees during calendar year 2008. S
