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1997 Education Tax Incentives
As a student, you or your parents may be eligible for Education Tax Incentives passed by Congress in 1997.
Information on 1997 Education Tax Incentives IRS NOTICE 97-60
| Federal Hope Credit * |
Lifetime Learning Credit * |
Education IRA * |
Interest Deduction |
IRA Distribution |
|
| Effective Date | Payments made after 12-31-97 |
Payments made after 6-30-98 |
1998 tax year and forward |
Payments made after 12-31-98 |
Distributions made after 12-31-98 |
| Maximum Available | $1,500 Nonrefundable Credit |
$1,000 to Yr 2002 $2,000 thereafter NonRefundable Credit |
$500 per beneficiary (under 18) |
$1,000 in 1998 $1,500 in 1999 $2,000 in 2000 $2,500in/after 2001 |
No Limit (for qualified ed. expenses); 10% penalty waived |
| Room and Board Included? |
NO | NO | Yes, if student enrollment 1/2 time | Yes, if student enrollment 1/2 time | Yes, if student enrollment 1/2 time |
| Qualifying Educational Expenses |
Tuition and Fees 1st 2 years only Enrolled 1/2 time |
Tuition and Fees | Tuition, Books Fees, Supplies, Equipment |
Tuition, Fees and Related Costs Enrolled 1/2 time |
Tuition, Books, Fees, Supplies, Equipment |
| Eligible Persons |
You, Spouse Dependent |
You, Spouse Dependent |
Anybody | You, Spouse Dependent |
You, Spouse, Child Grandchild |
| Eligible Institutions |
Those where students may qualify for Federal Fin. Aid |
Those where students may qualify for Federal Fin. Aid |
Those where students may qualify for Federal Fin. Aid |
Those where students may qualify for Federal Fin. Aid |
Those where students may qualify for Federal Fin. Aid |
| Adjusted Gross Income Phase Out |
Single $40,000 to $50,000 Joint $80,000 to $100,000 |
Single $40,000 to $50,000 Joint $80,000 to $100,000 |
Single $95,000 to $100,000 Joint $150,000 to $160,000 |
Single $40,000 to $55,000 Joint $60,000 to $75,000 |
No Phase Out |
* For any tax year, a taxpayer is permitted to elect only one of these incentives with respect to any student.
This information is provided for students of Valdosta State University as a general guideline. The material presented herein is taken from IRS Publication 97-60 but is NOT all inclusive.
Individuals should not rely solely on information provided in this document. Individuals should consult their tax advisors for eligibility, credit calculations, income limitations and other provisions related to these tax incentives.
New Tax & Saving Options for Education brochures are available at the Bursary or in Nevins Hall, room 1173 or visit the following three websites for more information.