A nonrefundable Michigan income tax credit for college tuition and uniformly-required fees paid on behalf of a student is available for 2005. Uniformly-required fees are those fees which are paid by all students attending the named college or university.

To claim this credit, a taxpayer must be a permanent resident of Michigan at the time the tuition and fees were paid, have adjusted gross income of $200,000 or less, and file a Michigan Income Tax Return (Form MI-1040).

The student must attend a Michigan institution of higher education which certifies that tuition will not increase in the ensuing academic year by more than the preceding year's rate of inflation. See the list below. If your school is not listed, you may not claim the credit.

The amount of the credit is limited to 8% of tuition and fees paid per student. The credit cannot exceed $375 for each student in each tax year and can only be taken for four years per student. OnLine Taxes will compute the credit for you based on the expenses entered.

Students attending an institution providing programs solely for sectarian instruction or religious worship are not eligible for the credit.

When computing the credit remember:

• The student must be working on an undergraduate degree or certificate.
• Use the amount of tuition and fees actually paid by the claimant during the tax year. Tuition and fees paid by student loan funds are eligible for the credit. Do not include the amount covered by MET contracts, scholarships, grants, etc.
• The cost of books, room and board, transportation, etc. are not considered tuition and fees paid and therefore cannot be used in the computation.
• The credit cannot exceed $375 per student, even if two or more individuals have contributed to one student's education.
• Amounts paid into (or under) a MET contract do not qualify as tuition paid.

2005 Michigan College and University Code List
Bay Mills Community College
0245 Concordia University
0524 Henry Ford Community College
0341 Lewis College of Business 0568
0568 Mid Michigan Community College
0612 Oakland Community College
0420 Walsh College of Accountancy and Business
0636 Wayne County Community College

Back