Taxpayer Relief Act of 1997
The Taxpayer Relief Act of 1997 (TRA97) provides several new tax benefits to help families meet the cost of postsecondary education. Taxpayers can claim one of two new tax credits for qualified tuition and related expenses they pay for postsecondary education for themselves and their dependant children. These tax credits can directly reduce the amount of federal income tax for returns filed in 1999 or later.
The Hope Scholarship Credit is available on a per-student basis for the first two years of postsecondary education, while the Lifetime Learning Credit applies on a tax-return basis and covers a broader time frame and range of educational courses. Education expenses paid with tax-free grants, scholarships, and employer education assistance are not eligible for either tax credit. However, education expenses paid with loans and other out-of-pocket means are eligible for these tax credits.
For more information call the K-State's Controller's Office at 1-877-817-2287 or 785-532-6420, or e-mail k-statesfa@k-state.edu.
