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Tax
Information for Students and Parents
IRS web page designed specifically for students and parents.
IRS Benefits
for Higher Education Brochure
Hope
Scholarship
The Hope Scholarship is a tax credit, not a scholarship. Tax credits are
subtracted from the tax your family owes, instead of subtracting them
from taxable income like a tax deduction. Your family must file a federal
tax return and owe taxes to get this tax credit. You can't get a refund
for the Hope credit if your family doesn't pay taxes. If your family owes
less in taxes than the maximum amount of the Hope tax credit for which
your family is eligible, you can only take the credit for the amount you
owe in taxes.
Lifetime
Learning Credits
The actual amount of the credit depends on your family's income, the amount
of qualified tuition and fees paid, and the amount of certain scholarships
and allowances subtracted from tuition. This credit is family-based (e.g.,
$1,000 per family) rather than based on the number of dependents in your
family like the Hope credit.
Student Loan
Interest Deduction
If you paid interest on a student loan in 2004, you may be able to deduct
up to $2,500 of the interest you paid. If you pay $600 or more in interest
during the year to a single lender, you should receive a statement at
the end of the year from the lender showing the amount of interest you
paid. That information will help you complete your tax return.
Oregon
College Savings Plan
Brought to you by the Oregon Qualified Tuition Savings Board, chaired
by the Oregon State Treasurer, the Oregon College Savings Plan is an innovative,
new, qualified state tuition program that helps families across the country
save for one of their most important financial goals – their children's
education. With the Oregon College Savings Plan, you can open an account
on behalf of a designated beneficiary. Your contributions are placed in
a trust and are directed into special investment portfolios designed and
managed specifically for the Plan. Earnings in your account will grow
state and federally tax-deferred until the time your beneficiary is ready
to go to college. The funds are then available to be used to pay for qualified
higher education expenses at any eligible school – including technical,
vocational, and graduate schools.
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