UC Santa Barbara General CatalogUniversity of California, Santa Barbara

Taxpayer Relief Act

The Taxpayer Relief Act of 1997 includes a number of educational tax benefits that may have an impact on students and their families. The act includes the following sections that involve the University reporting information on students to the Internal Revenue Service.

Hope Scholarship Tax Credit: a nonrefundable credit equal to a maximum of $2500 in out-of-pocket qualified tuition and fee expenses paid by or on behalf of a student for two tax years during which the student is enrolled at least half time in the first or second year of postsecondary education leading to a recognized degree or certificate.

Lifetime Learning Credit: a nonrefundable credit equal to 20% of the $10,000 of qualified out-of-pocket tuition and fee expenses paid by or on behalf of a student enrolled in postsecondary course work at the undergraduate or graduate level leading to a recognized degree or certificate or to improved job skills.

Student Loan Interest Deduction: a deduction from income of up to $2500 per year for interest paid on a qualified education loan.

To find out if you qualify for benefits under these or other provisions of the Taxpayer Relief Act, please contact a tax consultant or call the Internal Revenue Service. The University of California is not authorized to respond to tax questions.

For more information about the Taxpayer Relief Act, refer to this Web site maintained for students at the University of California campuses: www.1098-T.com.