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

On-campus actual costs:

1. Log into OneStart
2. Click ‘Go to Student Center’ on the Student Self-Service page
3. Click ‘Account Inquiry’ under Finances>My Account
4. Click the ‘Activity’ link
5. Use the calendar under ‘View by’ to find 2008 transactions (From 01/01/2008 to 12/31/2008)
6. Add each room and meal charge to determine the total cost; adjust as necessary to determine the amount paid in 2008      

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.  Details of amount included on your 1098-T will be available on OneStart after January 31, 2009.  For questions about the 1098-T, please see http://fms.indiana.edu/tax/1098T.asp for assistance.

Adams, Bartholomew, Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence, Madison, Marion, MONROE (Indiana University Bloomington), Morgan, Owen, Parke, Pike, Posey, Putnam, Randolph, Ripley, Rush, Shelby, Sullivan, Tippecanoe, Vermillion, Vigo, Washington, and Wayne.

For additional information, please refer to:

IRS Resources (http://www.irs.gov/index.html)
IRS Publication #17, Chapter 35, Education Credits
IRS Publication #970 (2008), Tax Benefits for Education
IRS Form #8863, Education Credits (Hope and Lifetime Learning Credits)