Taxpayer Relief Act (TRA) of 1997

Extension Students — You May Be Eligible for a Federal Tax Credit Through the Taxpayer Relief Act (TRA) of 1997

The Taxpayer Relief Act (TRA) of 1997 includes a number of education tax benefits applicable to individuals completing postsecondary coursework.

• Hope Scholarship Tax Credit — Effective January 1, 1998, the TRA provides for a nonrefundable tax credit for out-of-pocket qualified tuition and related expenses for each student in the taxpayer's family (the taxpayer, the taxpayer's spouse, or an eligible dependent) enrolled at least half-time in one of the first two years of postsecondary education in a program leading to a degree, certificate or other recognized educational credential. A credit of up to $1,500 may be available for each eligible student.

Note: Half-time at UCR Extension — Individuals completing six units of coursework in one quarter are considered enrolled half-time.

• Lifetime Learning Credit — Effective July 1, 1998, the TRA provides for a nonrefundable credit for the out-of-pocket qualified tuition and related expenses of the students in the taxpayer's family (the taxpayer, the taxpayer's spouse, or an eligible dependent) who are enrolled at eligible educational institutions. Enrollment may be part-time, even in a single course. The credit is equal to 20% of the first $5000 of expenses.

Note: Subject to income limitations.

For more information, contact your tax consultant or preparer; visit the U.S. Department of Education Web site at http://www.ed.gov/offices/OPE/PPI/HOPE/; or visit the Internal Revenue Service Web site at http://www.irs.gov/individuals/students/.