Rep. Dunn Asks Treasury to Investigate Problem With Education Credits
Rep. Dunn Asks Treasury to Investigate Problem With Education Credits
- AuthorsDunn, Rep. Jennifer
- Institutional AuthorsU.S. House of Representatives
- Code Sections
- Subject Area/Tax Topics
- Index Termseducation, tax incentives
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 97-32270 (2 pages)
- Tax Analysts Electronic Citation97 TNT 233-25
Rep. Jennifer Dunn, R-Wash., has asked Treasury to investigate a problem one of her constituents has with the Hope Scholarship and Lifetime Learning credits. According to Richard A. Rutkowski of Green River Community College, Auburn, Wash., students in Washington community and technical colleges will not be able to apply the credit to their 1998 winter quarter tuition and fees because the colleges require them to pay their 1998 winter quarter expenses in 1997. To correct the problem, he suggests allowing payments made in 1997 to qualify for the credit when they are for 1998 tuition and expenses.
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November 7, 1997
The Honorable Robert E. Rubin
Secretary
Department of The Treasury
1500 Pennsylvania Avenue N.W.
Room 3330
Washington, DC 20220
Dear Secretary Rubin:
[1] I am writing on behalf of Mr. Richard A. Rutkowski, President of Green River Community College, regarding the Hope Scholarship and Lifetime Learning Credits.
[2] According to Mr. Rutkowski, he is concerned about when the Hope Scholarship will be available to his students. Mr. Rutkowski recently learned that this scholarship is not available to Community College students in Washington State for the Winter quarter because they are required to pay for their classes in December 1997. Therefore, these students will not be able to apply this scholarship to their 1998 taxes and will lose the benefit. Please review the new law and provide me with information on what can be done to allow these students to take advantage of these funds. Your attention to this situation is appreciated.
[3] If you have any questions, please contact Debbie Davis in my district office at (425) 450-0161.
Jennifer Dunn
Member of Congress
Enclosure
* * * * *
November 7, 1997
The Honorable Jennifer Dunn
U.S. House of Representatives
Nine Lake Bellevue Drive
Bellevue, WA 98005
Dear Representative Dunn:
[4] The HOPE Scholarship Tax Credit becomes effective January 1, 1998. A $1500 credit will be allowed to students and parents of students during their first two years of higher education.
[5] There is a problem with the HOPE program that applies only to the first year of its operation. In Washington State, community and technical college students are required to pay tuition and fees prior to the start of the quarter. In fact, most of our 160,000 students statewide will pay for winter quarter 1998 tuition and fees in 1997. Some of these students will be precluded from the Hope Scholarship benefit by virtue of this timing problem. The Internal Revenue Service, in its ruling 97-60, states that only payments made in 1998 qualify for the HOPE credit.
[6] A possible solution to the problem could come in the form of an IRS interpretation that would allow 1997 payments to qualify for the credit when those payments are made for 1998 tuition and fees. My request to you is to secure such a determination on behalf of students not only in Washington State but across the entire country. Such a determination will allow the HOPE program to serve precisely those individuals which it was intended to serve.
[7] Thank you for your help in this matter. If you need any further information, please do not hesitate to contact me. I may be reached at (253) 288-3340.
Sincerely,
Richard A. Rutkowski
President
Green River Community College
Auburn, Washington
- AuthorsDunn, Rep. Jennifer
- Institutional AuthorsU.S. House of Representatives
- Code Sections
- Subject Area/Tax Topics
- Index Termseducation, tax incentives
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 97-32270 (2 pages)
- Tax Analysts Electronic Citation97 TNT 233-25