Form 8917 - Tuition And Fees Deduction, Specific Instructions

Form 8917 (2007)

Page

You or anyone else claims a Hope or lifetime learning credit

refund or tax-free assistance had been received in the year for

(Form 8863) in 2007 with respect to expenses of the student for

which you claimed the tuition and fees deduction. Include that

whom the qualified education expenses were paid. However, a

amount as additional income for the year the refund or tax-free

state tax credit will not disqualify you from claiming a tuition and

assistance was received.

fees deduction.

Example. You paid $8,000 tuition and fees in December 2006,

and your child began college in January 2007. You filed your

What Expenses Qualify

2006 tax return on February 2, 2007, and claimed a tuition and

fees deduction of $4,000. After you filed your return, your child

Qualified education expenses. Generally, qualified education

dropped two courses and you received a refund of $5,600. You

expenses are amounts paid in 2007 for tuition and fees required

must refigure your 2006 tuition and fees deduction using $2,400

for the student’s enrollment or attendance at an eligible

of qualified expenses instead of $8,000. The refigured deduction

educational institution. It does not matter whether the expenses

is $2,400. You must include the difference of $1,600 on your

were paid in cash, by check, by credit card, or with borrowed

2007 Form 1040, line 21. You cannot file Form 1040A.

funds.

Qualified education expenses do not include amounts paid

Who Is an Eligible Student

for:

For purposes of the tuition and fees deduction, an eligible student

Room and board, insurance, medical expenses (including

is a student who was enrolled in one or more courses at an

student health fees), transportation, or other similar personal,

eligible educational institution (as defined under Qualified

living, or family expenses.

education expenses, earlier on this page). The student must have

Course-related books, supplies, equipment, and nonacademic

either a high school diploma or a General Educational

activities, except for fees required to be paid to the institution as

Development (GED) credential.

a condition of enrollment or attendance.

More Information

Any course or other education involving sports, games, or

hobbies, or any noncredit course, unless such course or other

See Pub. 970 for more information about this deduction.

education is part of the student’s degree program.

You should receive Form 1098-T, Tuition Statement, from the

Specific Instructions

college or university reporting either payments received in box 1

or amounts billed in box 2. However, the amounts in boxes 1

Line 1

and 2 of Form 1098-T may be different than what you actually

paid. On Form 8917, line 1, enter only the amounts you paid in

Complete columns (a) through (c) on line 1 for each student who

2007 for qualified expenses.

qualifies for and for whom you elect to take the tuition and fees

If you or the student take a deduction for higher education

deduction.

expenses, such as on Schedule A or Schedule C (Form 1040),

you cannot use those expenses when figuring your tuition and

Note. If you have more than three students who qualify for the

fees deduction.

tuition and fees deduction, enter “See attached” next to line 1 and

attach a statement with the required information for each

You cannot take a tuition and fees deduction for qualified

additional student. Include the amounts from line 1, column (c), for

higher education expenses used to figure the exclusion from

all students in the total you enter on line 2.

gross income of (a) interest received under an education savings

bond program, or (b) distributions from a Coverdell education

Column (c)

savings account (ESA) or qualified tuition program (QTP).

For each student, enter the amount of qualified education

Eligible educational institution. An eligible educational

expenses remaining after reduction by certain tax-free amounts

institution is any college, university, vocational school, or other

and refunds, as explained earlier. The expenses must have been

postsecondary educational institution eligible to participate in a

paid for the student in 2007 for academic periods beginning after

student aid program administered by the Department of

2006 but before April 1, 2008.

Education. It includes virtually all accredited public, nonprofit,

and proprietary (privately owned profit-making) postsecondary

Paperwork Reduction Act Notice. We ask for the information on

institutions. The educational institution should be able to tell you

if it is an eligible educational institution.

this form to carry out the Internal Revenue laws of the United

States. You are required to give us the information. We need it to

Certain educational institutions located outside the United

ensure that you are complying with these laws and to allow us to

States also participate in the U.S. Department of Education’s

figure and collect the right amount of tax.

Federal Student Aid (FSA) programs.

You are not required to provide the information requested on

Tax-free educational assistance and refunds of qualified

a form that is subject to the Paperwork Reduction Act unless the

education expenses. Tax-free educational assistance includes a

form displays a valid OMB control number. Books or records

tax-free scholarship or Pell grant or tax-free employer-provided

relating to a form or its instructions must be retained as long as

educational assistance. See Pub. 970 for specific information.

their contents may become material in the administration of any

You must reduce the total of your qualified education

Internal Revenue law. Generally, tax returns and return

expenses by any tax-free educational assistance and by any

information are confidential, as required by section 6103.

refunds of your expenses. If the refund or tax-free assistance is

The average time and expenses required to complete and file

received in the same year in which the expenses were paid or in

this form will vary depending on individual circumstances. For

the following year before you file your tax return, reduce your

the estimated averages, see the instructions for your income tax

qualified education expenses by the amount received and figure

return.

your tuition and fees deduction using the reduced amount of

qualified expenses. If the refund or tax-free assistance is

If you have suggestions for making this form simpler, we

received after you file your return for the year in which the

would be happy to hear from you. See the instructions for your

expenses were paid, you must figure the amount by which your

income tax return.

tuition and fees deduction would have been reduced if the

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Form 8917 - Tuition And Fees Deduction, Specific Instructions - 2007

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