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450 North Avenue • Battle Creek, MI 49017 • (269) 965-3931
WHAT IS IT?
Lifetime Learning tax credits are federal income tax benefits from the IRS. They are NOT scholarship awards from the KCC Financial Aid office. You must first pay for your tuition at the College. You must have earned income and file a tax return. You will receive a 1098-T form from KCC to verify your student status. After your Hope Scholarship or Lifetime Learning Tax Credits are subtracted in your 1040, you will owe less federal income tax. You can't declare beyond a zero tax liability. It may increase any eligible refund due to you. WHO IS ELIGIBLE? Any student from college freshman through doctoral candidate is eligible for this credit when taking one credit or more toward a degree or job related certificate/degree. ADJUSTED GROSS INCOME? Maximum income allowable to receive the tax credit is $100,000 or $50,000 for single filers. The benefits are reduced for $80,000-100,000 joint and $40,000-50,000 incomes for single individuals. ELIGIBLE EXPENSES? Eligible expenses include only tuition and related fees paid after June 30, 1998. Eligible expenses do not include books, room and board, transportation, child care, etc. FINANCIAL AID? Deduct scholarships, grants, employer payments. However, student loans to be repaid may be used. You may only declare portion you have paid.LIMITATIONS? No time limits. Each student only Hope or Lifetime, per tax year. Maximum credit is per tax return, not per student. If refund, payable to tax filer, not to dependants. EFFECTIVE DATE? July 1, 1998 HOW DO I FIGURE CREDIT AND FILE WITH IRS? 20% of first $5000 eligible tuition, maximum $1000 tax credit. Use 1098T from College to complete IRS form 8863, file with 1040 tax return.QUESTIONS? Call the IRS hot line dedicated to Hope/Lifetime tax credits at 1-202-622-2970. See info with Q&A's on the IRS website. Free Internet access is available to our students at all KCC sites. KCC is not liable for any federal tax interpretation. |
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