HOPE Tax Benefits: Financial Aid

New Federal Tax Benefit to Pay for Your College Tuition

Congress passed the Taxpayer relief Act of 1997, which means you may be able to save money on your education. The HOPE Tax Credit (also called the HOPE Scholarship) is a tax credit that benefits community college students, helping you save on your tuition.

What it is

The HOPE Tax Credit allows a federal tax credit of 100% of the first $1,000 of your tuition and fees and 50% of the second $1000 for each qualified student.

Example: A full-time student taking 12 credit hours is charged $1,509.60 in tuition for two semesters (not including fees*). The new law allows the first $1,000 of the tuition as a tax credit, and 50% of the second $1,000. In this example, the student would have a $1,254.80 tax credit, thereby saving money on education. (*Fees vary)

Who benefits

The HOPE Tax Credit may be available during the first two calendar years of college for students, student's parents or a student's spouse. You must be a taxpayer to take advantage of this tax credit. You must also be enrolled at least half-time (6 credit hours) in a degree or other program leading to a recognized education credential.

When it starts

As soon as you begin attending school this becomes a valid deduction. If you are enrolling for courses this semester, and want to know more -- please contact your tax advisor for the latest information.

What can be included in the tax credit

The HOPE Tax Credit applies only to tuition and fees, not to books, housing costs, or other college expenses.

Income requirements and special information

Single students are eligible if their annual income is less than $50,000. Married students who file joint tax returns must make less than $100,000 annually. Consult your tax advisor for specific information on the HOPE Tax Credit. Information is subject to change.

1098T Tax Forms

The Colorado Community College System is providing the tax information on Form 1098T to you on-line for calendar year 2007. You will not receive a separate paper copy in the mail. Please follow these steps to access and print your tax reporting information. Please consult your tax advisor if you need assistance using the data provided.

• Access your student account at your college website.
• Select “MyCommunity EDUCATION” and log in using your student ID (S#) and PIN.
• Select the Student Tab.
• Select the Student Account Menu.
• Select the Tax Notification.
• Enter Year 2007 and click Submit.

Your 1098T will be available by midnight on January 31st, 2008. For assistance please call 303.797.5637 or e-mail to taxcredits@arapahoe.edu.

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