Tax Credit Information

Federal tax filers may find that they can qualify for one of the two tax credits made available by the Taxpayer Relief Act of 1997. To qualify for these tax credits, a family must file a tax return and owe taxes.

Hope Scholarship Tax Credit

• This credit is equal to 100% of the first $1,000 plus 50% of the next $1000 of the taxpayer's out-of-pocket expenses for each student's qualified tuition and related expenses paid on or after January 1.


• The student must have been enrolled at least half-time in a degree or certificate program at an eligible institution and have been in one of his or her first two years of post secondary education.

Lifetime Learning Tax Credit

• This credit is equal to 20% of the first $5,000, for a maximum credit of $1,000, of the taxpayer's out-of-pocket expenses for qualified tuition and related expenses paid on or after January 1. The Lifetime Learning Tax Credit is available to students who do not qualify for, or have used up their eligibility for the Hope Scholarship Credit. Unlike the Hope Scholarship, this tax credit is calculated per family rather than per student.

These tax credits are not available to taxpayers who have a modified adjusted gross income over $50,000 ($100,000 for married taxpayers filing jointly). Students who have their tuition and related expenses fully paid by scholarships, grants or fellowships will not qualify, and those who have partial payments from these sources may not be eligible for the full tax credit.

Form 1098-T

• The Cashier’s Office at West Virginia State University will issue Form 1098-T to students/parents with qualified tuition and related expenses. This form will be mailed by January 31 of each year. If you have questions about the information on the Form 1098-T you may contact the Cashier’s Office at: (304)766-3141.

Student Loan Interest Deduction -- Form 1098-E

• Taxpayers who have borrowed loans to pay the cost of attending an eligible educational institution for themselves, their spouse, or their dependents generally may deduct interest they pay on these student loans. The deduction is available only for interest payments made during the first 60 months in which interest payments are required on the loan.


• Eligible borrowers will receive form 1098-E from the holder(s) of their student loans. This form will report how much qualified student loan interest was paid during the previous calendar year. Borrowers may receive more than one of these if they are making payments on student loans to multiple lending institutions.

Note: For specific questions concerning the tax credits and the Student Loan Interest Deduction, or for tax guidance, taxpayers should contact the Internal Revenue Service at 1-800-829-1040, or consult with a tax adviser. You may also want to view this IRS publication, Tax Benefits for Education.