What qualifies as tuition?
Qualified tuition means the amount charged by a college or university as a condition of enrollment and includes required fees. The cost of dorm rooms, books and meals are not included in tuition.
What do I need to list as a scholarship grant?
You must deduct any scholarship or grant used to pay qualified tuition before calculating the credit. Scholarship grants do not include grants not used to pay qualified tuition, student loans, IRC Section 127 educational assistance plans, payment for teaching, research or other services, or veteran educational assistance benefits.
How many credit hours must be completed? A student attending both the spring and fall semesters at any eligible college or university other than Johnson and Wales must complete 30 credit hours within the taxable year. Johnson and Wales requires 36 hours. Except when enrolled in one of the colleges below, a student attending one but not both of the spring and fall semesters at any eligible college or university must complete 15 credit hours during the semester attended. The exceptions are:
Summer credit hours may not be included in arriving at the semester requirement for credit hours.
NOTE: The Tuition Tax credits may not be claimed for more than four consecutive years after the date of enrollment in an eligible institution. However, extensions may be granted due to medical necessity as defined by the Commission on Higher Education.
What is the tuition limit?
A tuition limit ($5,629 for 2003) applies to students at independent 4-year colleges and universities. The tuition limit is the average tuition paid to public 4-year colleges and universities other than technical or research schools. The tuition limit is determined each year by the South Carolina Commission on Higher Education. If the student in 2003 did not attend a full year of college, the tuition limit is recalculated by multiplying $5,629 by the credit hours that apply to all terms attended, and divided by the annual requirement (30 hours for all schools except Johnson and Wales which has a 36 hour requirement). Except at the colleges below, a $2,815 tuition limit applies when a student attends one but not both of the spring and fall semesters. $2,815 equals the $5,629 annual tuition limit multiplied by the semester requirement of 15 credit hours and divided by the annual requirement of 30 credit hours.
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