Office of the Bursar

Taxpayer Relief Act of 1997 - TRA97

You may have recently received IRS Form 1098-T from Florida Gulf Coast University. This form was sent to you in compliance with the Taxpayer Relief Act of 1997. However, the information on the form is helpful in determining your eligibility for the Hope Scholarship Credit or Lifetime Learning Credit.

What is it?

In August 1997, President Clinton signed the Taxpayer Relief Act of 1997 (TRA97) into law, introducing a new era of federal support of unprecedented magnitude to students and their parents. TRA97 created two educational tax credits for students and families:

• The Hope Scholarship tax credit provides up to $1,500 per student for qualified tuition and related expenses for the first two years of postsecondary education. To be eligible, students must be enrolled at least half-time in a degree or academic credit granting program.
• The Lifetime Learning tax credit is more broadly applicable to any postsecondary education to acquire or improve job skills. It provides a credit equal to 20 percent of the first $5000 of qualified expenses (up to a maximum of $1000) per taxpayer (i.e. family).

To ensure greater accuracy on the part of taxpayers claiming the education tax credits, Congress included a new information reporting program in TRA97 for eligible higher education institutions. Florida Gulf Coast University (FGCU) is required to file information reports with the IRS and furnish statements to taxpayers for each student for whom qualified tuition and related expenses have been received.

What did FGCU report on amounts billed for qualified tuition?

FGCU had to either report Payments Received for qualified tuition and related expenses (box 1) or Amounts Billed for qualified tuition and related expenses (box 2).

From your 1098T you will notice that FGCU reported box 2

Here's a sample of how box 2 was calculated:

In order to calculate box 2 we added tuition (UR01) and lab fees (LAB1) and excluded the transportation fee. The transportation fee (TF) is included into the tuition amount. The formula we use to perform this calculation is noted below:

TUI + LAB fees - (TF*credit hour) = amount in box 2

For detailed Fee information: Tuition & Fees

Exception

FGCU does not have to file Form 1098-T for students enrolled during the year in courses for which the student received no academic credit from FGCU. Also, FGCU does not have to file Form 1098-T for nonresident alien students, unless requested by the student.

FGCU is providing this information to comply with the reporting requirements for the Hope Scholarship and Lifetime Learning tax credits of TRA97. You must determine whether or not you are eligible for the credit and how to take advantage of it.

How do I find out if I qualify?

Much of the information needed for you to determine your eligibility for these tax credits is known only to you. Questions concerning payments for tuition and fees, financial aid awards, and reimbursements or refunds of tuition and related expenses are expected.

THIS INFORMATION IS AVAILABLE TO STUDENTS ON THE WEB AT: gulfline.fgcu.edu

Navigate through the Menu as follows:

• Student and Financial Aid
• Student Records
• Tax Notification
• Then Select the Tax Year

Despite FGCU's best effort to provide students and families with as much information as possible, we cannot provide you with advice regarding your eligibility for tax credits, tax return reporting requirements or your tax liability. Please seek the advice of a competent tax professional or the IRS concerning current tax laws and regulations.

Additional Resources

• IRS Publication 970, Tax Benefits for Higher Education - PDF
• National Association of College and University Business Officers (NACUBO)