formerly University of Missouri-Rolla
Federal Financial Aid Programs

Tax Savings Programs

HOPE Scholarship Credit

The Tax Relief Act of 1997 may offer you the opportunity for tax savings through the HOPE scholarship credit. Please note that the HOPE is actually a tax credit and not a scholarship. Tax credits are subtracted directly from the tax a family owes to the Internal Revenue Service and will not appear on your account statement from Missouri S&T. The HOPE tax credit may provide a tax credit of up to $1500 for eligible expenses for each of the first two years of college. The Hope tax credit is effective for qualified student fees and related expenses paid after December 31, 1997, for tax years ending after that date for academic periods beginning after the date.

Some other Provisions of the HOPE credit as understood at this time:

  • Credit applies only to the first two (2) years of post-secondary education.
  • To qualify for the HOPE credit, a student must be enrolled at least half-time for one academic period during the year.
  • The HOPE credit can equal up to 100% of the first $1,000 in qualified costs and up to 50% of the second $1,000 in qualified costs.
  • Qualified costs at Missouri S&T will be the student fees. The law specifically excludes books, room and board, insurance, activity fees, health fees, athletic fees and other expenses the federal government has defined as unrelated to the student's academic course of study.
  • The qualified costs will be reduced by the sum of any scholarship excludable from gross income under Section 117 of the Internal Revenue Code. These include Pell, SEOG, institutional waivers and scholarships and possibly private scholarships.
  • The proceeds of student and parent loans flowing through the student's account are considered payments by the taxpayer.
  • The credit will be available to individuals with adjusted gross income(AGI) below $40,000 or $80,000 for joint filers. A reduced tax credit will be available for individuals with AGI between $40,000 and $50,000 and joint filers with AGI between $80,000 and $100,000.

Missouri S&T's intent is not to offer tax advice but to alert students and parents of the potential tax credit. Please contact a tax professional or the IRS at (800) 829-1040 or the IRS Office of Public Liaison at (202) 622-2970 for details.

 

Missouri Saving for Tuition (MO$T) Program

The Missouri Saving for Tuition (MO$T) Program provides incentives to save for college expenses by allowing up to $8,000 to be deducted annually from an individual's Missouri adjusted gross income. Earnings on the account are exempt from state taxes and, beginning Jan. 1, 2002, federal taxes, if they are used to pay the beneficiary's qualifying educational expenses. Call (888) 414-MOST or visit the program's web site at www.missourimost.org for more information.

Additional sites containing information related to the Tax Relief Act of 1997: