Changes to Hope and Lifetime Learning Tax Credits for 2008:

Students Attending An Eligible Educational Institution in Midwestern Disaster Areas: The following changes apply to students attending an eligible educational institution in a Midwestern disaster area in the states of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, and Wisconsin.

• Hope credit increased: The Hope credit for a student in a Midwestern disaster area is 100% of the first $2,400 of qualified education expenses and 50% of the next $2,400 of qualified education expenses for a maximum credit of $3,600 per student.
  
  
• Lifetime Learning credit increased: The Lifetime Learning credit rate for a student in a Midwestern disaster area is 40%.
  
  
• Definition of qualified expenses expanded: In addition to qualified tuition and fees, the definition of qualified education expenses is expanded for students attending school in a Midwestern disaster area.  Included in the expanded definition:

  For a student who is enrolled at least half-time, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts:

  1. for a student who is living in University housing, the actual cost of room and meals paid in 2008
     
     
  2. for a student living off campus, the reasonable costs of room and meals paid in 2008, but not to exceed the amount used in the institution’s official cost of attendance

Determining Your Room and Board Costs Paid in 2008

For on-campus actual costs contact the Bursar's office at askbursar@purdue.edu.

Off-campus housing allowance as determined by the Office of Student Financial Assistance:

You may add the appropriate cost/allowance to the amount listed in Box 1 of your 1098-T to determine your qualified educational expenses.