Financial Aid

Tax Benefits

Hope and Lifetime Learning Tax Credit
Student Loan Interest Deduction
Tuition and Fees Deduction
Employer- Provided Educational Assistance

Taxpayers may be eligible for educationally related tax deductions or tax credits including: Hope and Lifetime Learning Tax Credit, Student Loan Interest Deduction, Tuition and Fees Deduction, Employer - Provided Educational Assistance. View IRS Publication 970 Tax Benefits for Higher Education for more information.

Western Michigan University does not provide personal tax advice. To determine your eligibility for any educationally related tax deductions or tax credits, please contact a personal tax advisor or the Internal Revenue Service (IRS) or visit the IRS Web Site.

Hope and Lifetime Learning Tax Credit

The Hope and Lifetime Learning tax credits can generally be claimed if you pay qualified tuition and related higher education expense for an eligible student who is either yourself, your spouse, or a dependent for which you claim an exemption. In 2007, you may be able to claim a Hope credit of up to $1,650 per eligible student OR a Lifetime Learning Credit for up to $2,000 per return. The amount of your credit is gradually reduced if your modified adjusted gross income is between $47,000 and $57,000 if you file a single return or $94,000 and $114,000 if you file a joint return. View IRS Publication 970, Tax Benefits for Higher Education, for more information.

Western Michigan University is required to mail a 1098-T form to most students on the amount of tuition and qualified fees paid. The 1098-T form is mailed by January 31st. To claim the credit, the student or parent completes IRS Form 8863 (available on the IRS web site: Forms and Instructions)

Each year after January 31st, you can also access your own 1098-T information on the web at www.1098-T.com. If you have questions about the information indicated on your 1098-T form, please call (877) 467-3821.

If you were enrolled in a course for academic credit during 2007 and do not receive a 1098-T form by February 10th and the form is not on www.1098-T.com) call (269) 387-6000 to request the form.

Student Loan Interest Deduction

If you pay interest on a student loan used to pay qualified education expenses in 2007, you may be able to deduct up to $2,500 of the interest as an adjustment to income. You may deduct all interest paid during the year on your student loan, both required and voluntary payments. The amount of the deduction will be gradually reduced if your modified adjusted gross income is between $55,000 and $70,000 for single returns, or between $110,000 and $140,000 for joint returns. View IRS Publication 970, Tax Benefits for Higher Education, for more information.

Tuition and Fees Deduction

You may be able to deduct qualified tuition and related expenses paid during the year 2007 for yourself, spouse or a dependent. The maximum deduction is limited to $4,000 of qualified tuition and related expenses if your modified adjusted gross income does not exceed $65,000 (single filers) or $130,000 if filing jointly. A maximum deduction of $2,000 is available if your modified adjusted gross income is greater than $65,000 but not more than $80,000 (single filers) or is greater than $130,000 but not more than $160,000 if filing jointly.

You cannot deduct any amount for qualified tuition and related expenses for a year if a Hope credit or Lifetime learning credit is claimed with respect to the expenses of the same individual.

View IRS Publication 970, Tax Benefits for Higher Education, for more information.

Employer-Provided Educational Assistance

Up to $5,250 of employer-provided educational assistance benefits is tax free each year. Both undergraduate-level and graduate-level courses are eligible for the exclusion. View IRS Publication 970, Tax Benefits for Higher Education, for more information.

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