The Taxpayer Relief Act of 1997 created two new federal income tax credits, the Hope Credit and the Lifetime Learning Credit, for which families paying educational expenses may qualify. The American Recovery and Reinvestment Act of 2009 expands on tax benefits available for the 2009 and 2010 tax years. The IRS urges students and parents to save their receipts and cancelled checks in anticipation of claiming this credit on 2009 tax returns.
For detailed information about these credits, visit the IRS Tax Benefits for Education Information Center, or consult your tax advisor. How Boston University reports qualified educational expenses to students is explained by Student Accounting Services in IRS Form 1098T.
IRS Publication 970 also explains regulations regarding the taxability of various types of financial aid, including scholarships and grants.
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