Office of the Bursar

2007 Tax Credits for Higher Education

You could be eligible for 2007 tax credits for the costs of higher education. The Hope Scholarship and Lifetime Learning tax credits are part of the Taxpayer Relief Act of 1997 that allows eligible taxpayers to claim a tax credit against their federal income tax for qualified tuition and related expenses.

The 2007 Hope Scholarship tax credit applies to educational expenses paid during 2007. You may be eligible for a credit of up to $1,650 for the qualified tuition and related expenses you paid for each eligible student.

To qualify for the Hope Scholarship tax credit, eligible students must meet the following requirements:

• Enrolled in one of the first two years of post secondary education (generally, the freshman or sophomore years of college).
• Enrolled in a program that leads to a degree certificate, or other recognized educational credential.
• Enrolled at least half-time in the normal full-time work load for at least one academic period during the calendar year.
• Free of any conviction for a Federal or State felony offense consisting of the possession or distribution of a controlled substance.

The Hope Scholarship tax credit amount is 100% of the first $1,100 plus 50% of the next $1,100 paid for each eligible student's qualified tuition and related expenses. The maximum amount of Hope Scholarship tax credit that can be claimed in 2007 is $1,650 for each eligible student.

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Penn State cannot provide individual tax advice and shall not be liable for damages of any kind in connection with this information. Accordingly, you should consult your tax advisor about your specific circumstances.

This information is available in alternative format upon request.