You or your family members may be eligible for federal income tax credits for the tuition and fees you pay at UA Fort Smith! Tax credits are available for students or parents who support students.

The Hope Tax Credit is available for students in their first two years of college who attend at least half-time. It provides a tax credit equal to 100% of a student's first $1,000 of qualified tuition and fees (less scholarships, grants, and tax-free tuition benefits) and 50% of the next $1,000. The maximum credit is $1,500 per each qualifying child.

The Lifetime Learning Tax Credit is available for undergraduate, graduate, and continuing education coursework to acquire or improve job skills. It provides a tax credit equal to 20% of qualified tuition and fees (less scholarships, grants, and tax-free tuition benefits) up to a $2,000 maximum credit each year per family, not per student.

College Tuition Deduction is a deduction allowed for college tuition and related expenses paid by a tax payer, or on behalf of the taxpayer's spouse, or dependent. This deduction can be claimed even if the taxpayer does not itemize deductions. The deduction is limited to $3,000 in 2003 and $4,000 in 2004 and 2005. Hope and Lifetime Learning Credits can not be claimed in a year when the College Tuition Deduction is claimed.

Both credits are gradually reduced for single taxpayers with adjusted gross income of $40,000 or more and married taxpayers with adjusted gross income of $80,000 or more. Please contact your tax advisor for complete details.

For more information on tax credits, read IRS publication 970 (PDF).