TAXPAYER RELIEF ACT OF 1997

KANSAS STATE UNIVERSITY



The Taxpayer Relief Act of 1997 (TRA97) provides several tax benefits to help families meet the cost of postsecondary education. Taxpayers can claim one of two tax credits for qualified tuition and related expenses they pay for postsecondary education for themselves and their dependent children. These tax credits can directly reduce the amount of federal income tax.

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.

The Kansas State University Cashiers Office has the responsibility for reporting all students’ attendance at KSU to the Internal Revenue Service (IRS).  Listed below is the information dissemination plan:

1). In January, the University Cashiers Office will prepare a report of all tuition, fee and related payment transactions for each student who attended Kansas State University during the tax year. This report will not be sent to the IRS. It will be provided in an effort to give students/parents sufficient information to take to their tax advisor to determine their eligibility for these tax credits. KSU personnel will not provide tax advice.

2). At the same time in January, the University Cashiers Office will mail an IRS 1098-T (Tuition Payments Statement) form to all students who attended KSU during the tax year. The 1098-T form will be mailed on or before the 31st of January. A copy of this form will also be provided to the IRS. This form will indicate whether the student was enrolled at least half time during any academic term in the tax year and also whether the student was enrolled in graduate credit courses during any academic period in the tax year. The amount the student was billed during the tax year and the amount of gift money received during the tax year. The IRS will use this information to help determine each student's eligibility for either the Hope Scholarship or Lifetime Learning Tax Credits.

3). The IRS 1098-T form will be mailed to each student's permanent or billing address on file with the KSU Registrar’s Office. Students should be sure that their permanent address is current. If students/parents do not receive an IRS 1098-T form by February 10, they should call the University Cashiers Office at 785-532-6317.