KNOXVILLE, Tenn. — The University of Tennessee is providing information to students who may qualify for federal tax credit under the Hope Scholarship program.
Jonee Daniels, UT bursar, said the Hope tax program offers up to $1,500 for each of the first two years of postsecondary education for those who qualify. The credits will be effective Jan. 1, 1998.
“Students who think they are eligible for the credit should wait until Jan. 1 to pay their spring semester fees,” Daniels said. “However, to avoid class schedule cancellation, the payment must be received by Jan. 5, 1998.”
A letter from the university is being mailed to the permanent address of first- and second-year students to inform them and their parents of the tax credit opportunity, Daniels said.
Class schedules and statements will be mailed Nov. 24, and an insert with information about the Hope Scholarship and Lifetime Learning Tax Credits will be included, she said.
The lifetime learning program, which becomes effective July 1, 1998, provides credits up to $1,000 after the first two years of study.
“We are telling students to check with a tax professional or refer to the Internal Revenue Service guidelines on these tax credit opportunities to determine eligibility,” Daniels said.
Hope Scholarship tax credits apply to tuition and mandatory student fees but not to books or room and board. The credit begins to phase out at annual income levels of $40,000 for an individual and $80,000 for a couple. There is no credit for individuals with incomes of $50,000 or couples at $100,000 or more.
Additional information is available at http://www-treas.admin.utk.edu.
Contact: Jonee Daniels (423-974-4495)