Policy Watch

TCRS keeps you up-to-date with TRA '97 regulatory information and more!!! The content on this page is designed to assist Educational Institutions by providing information regarding newly released regulations, publications, forms & filing instructions, regulatory requirements, and other documents related to Tax Benefits for Higher Education. To view and print PDF files, you will need to download Adobe Acrobat Reader

WHATS NEW FOR TAX YEAR 2009

MODIFICATIONS TO THE HOPE TAX CREDIT for Taxpayers Pursuant to The American Recovery and Reinvestment Act (ARRA), the American Opportunity Credit modifies the existing Hope Credit for 2009 and 2010 making the credit available to a broader range of taxpayers. American Recovery and Reinvestment Act of 2009: Marketing Products for Partners Comparison Table of the 2008 Hope Credit to the 2009/2010 American Opportunity (Hope) Credit Tax Benefits for Education: Information Center/Credits The American Opportunity (Hope) Credit The American Opportunity (Hope) Credit: Questions and Answers 2009/2010 Changes to The American Opportunity (Hope) & Lifetime Learning Credits How 529 Plans Help Families Save for College and How the American Recovery and Reinvestment Act of 2009 Expanded 529 Plan Features

2008/2009 INFORMATION FOR AFFECTED TAXPAYERS IN THE MIDWESTERN DISASTER AREAS(PDF)- Midwestern Disaster Relief Tax Benefits for Education: Information Center/Credits:-see Special Rules that apply to the Midwestern disaster area for 2009 under the American Recovery Opportunity Credit. This publication explains the major provisions of the Heartland Disaster Tax Relief Act of 2008 that apply only to the Midwestern disaster areas. Please refer to page 9 of this publication for information on Education Credits.

PUBLICATIONS, FORM(S), AND FILING INSTRUCTIONS

Tax Benefits for Higher Education.(PDF) IRS Publication 970 This document explains the tax benefits for persons who are saving for or paying higher education costs for themselves and members of their families. It includes information on the American Opportunity (Hope) and Lifetime Learning Credits.

Tuition Statement.(PDF) Form 1098-T IRS form to be prepared and distributed for all eligible students. The IRS indicates that the format may vary provided that all required information is presented. This information is used to help students determine the amount of credit for which they are eligible.

Tuition Statement Instructions.(PDF) Form 1098-T Instructions Tuition Statement Instructions. IRS guidelines for 1098-T reporting. Details included in the document include but are not limited to: details about filing information with the IRS, potential penalties, deadlines for filing, and how to make corrections.

Request for Student’s or Borrower’s Social Security Number and Certification.(PDF) Form W-9S Request for Student’s or Borrower’s Social Security Number and Certification. A student or borrower would use this form to provide a correct SSN to an educational institution. The institution needs a correct SSN in order to report student or borrower financial information to the IRS.

REGULATORY DOCUMENTS

Final 1098-T Reporting Rules and Regulations Issued By IRS.(PDFs) Education Tax Credit Final Regulations This document contains final regulations relating to the Hope Credit (Currently modified as The American Opportunity Credit by the American Recovery and Reinvestment Act of 2009) and the Lifetime learning Credit under section 25A of the Internal Revenue Code. Reporting for Qualified Tuition and Related Expenses; Magnetic Media Filing Requirements for Information Returns This document contains final regulations relating to the information reporting requirements for qualified tuition and related expenses under section 6050s of the Internal Revenue Code.

IRS Issues Proposed 6050S Regulations (April 29, 2002).(PDF) REG-161424-01 On April 29, 2002, the IRS issued new proposed regulations related to the reporting requirements under section 6050S for qualified tuition and related expenses.

Simplification of Reporting Requirements Relating To Higher Tuition and Related Expenses (December 4, 2001). H.R. 3346 On December 4, 2001, the U.S. House of Representatives passed H.R. 3346; a bill aimed to simplify the 1098-T reporting requirements for eligible institutions. The bill will amend §6050S of the Internal Revenue Code as stated below. Reporting institutions will no longer be required to collect and report information to taxpayers who may claim a student as a dependent. Institutions will have the option of reporting either aggregate amounts of qualified tuition and expenses paid by or on behalf of the student or amounts billed to the student. Institutions would report adjustments to amounts reported in prior years rather than all refunds and reimbursements to applicable students.

Economic Growth and Tax Relief Reconciliation Act of 2001 (June 7, 2001). H.R.1836 This bill provides for a $1.35 trillion tax cut that includes several provisions aimed at helping students and families pay for college.

Electronic Payee Statements.(PDF) TD 8942 The IRS has issued new regulations that would allow for the furnishing of 1098-T statements in an electronic format. TCRS now provides the option for students to consent to receive their forms in an electronic format via the www.1098-T.com web site.

Extension of Waiver Period. IRS Notice 2000-62 The IRS will not require financial information (e.g., the amount of qualified tuition and related expenses received and/or reimbursed) to be reported on the 1098-T statement until at least 2002. The proposed regulations published in June 2000 indicate that financial reporting will become mandatory but these regulations have not yet be finalized and approved.

Notice of Proposed Rulemaking--Education Tax Credits (January 6,1999). NPRM This document contains proposed regulations relating to the information reporting requirements under section 6050S of the Internal Revenue Code for payments of qualified tuition and related expenses and interest on qualified education loans, including the filing of information returns on magnetic media. The regulations reflect changes to the law made by the Taxpayer Relief Act of 1997.

1998 Reporting Requirements for Institutions (December, 1997). IRS Notice 97-73 This notice provides details related to 1098-T reporting requirements.

American Opportunity (Hope) and Lifetime Learning Credits. Section 25A The Internal Revenue Code Section 25A provides detailed information about the Hope Credit (Currently modified as The American Opportunity Credit by the American Recovery and Reinvestment Act of 2009) and the Lifetime Learning Credit. Details included, but limited to, are: information about the total amount of credit available under each credit, applicable limitations of the credit, definitions of terms and conditions applicable to the credits, income limits and eligibility.

Returns Relating to Higher Education Tuition and Related Expenses. Section 6050S These regulations provide information on how eligible educational institutions should report student financial records in relation to 1098-T reporting.

IRS Restructuring and Reform Act. Conference Report Excerpt This document provides information on 1098-T reporting requirements.