IRS Midwestern Disaster Areas

The IRS has expanded education tax credits for students attending an eligible educational institution located in a Midwestern “disaster area”, as noted in IRS Publication 4492-B.  College of the Ozarks is located in an affected area, which means qualified taxpayers may be able to receive a larger education tax credit or may be able to receive a tax credit when they never have before. 

The key provision that may help C of O students is the expanded definition of what the IRS considers “qualified education expenses”.  In normal tax years, charges for room and board cannot be claimed for education tax credits.  But for 2009, for both commuting and dorm students, room and board charges are considered qualified education expenses for students attending an eligible educational institution located in a Midwestern disaster area. 

From IRS Publication 4492-B, qualified education expenses for a Midwestern disaster relief area student include: for a student who is at least a half-time student, 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.  The allowance for room and board as determined by the eligible institution, that was
      included in the cost of attendance (for federal financial aid purposes) for a particular
      academic period and living arrangement of the student;

for commuters (only one can be applicable):

2.  The actual amount charged if the student is residing in housing owned or operated by the
     eligible educational institution.

	Spring 2009	Fall 2009	Total
2009 Dorm Charges:	2,350	2,500	4,850

College of the Ozarks cannot provide tax advice to students or parents.  Please consult the publications below, your tax advisor, or the IRS for more information regarding eligibility for the Midwestern disaster relief provisions. 

http://www.irs.gov/newsroom/article/0,,id=213044,00.html

http://www.irs.gov/app/picklist/list/publicationsNoticesPdf.html?value=4492&criteria=formNumber

http://www.irs.gov/app/picklist/list/formsInstructions.html?value=8863&criteria=formNumber

http://www.irs.gov/app/picklist/list/publicationsNoticesPdf.html?value=970&criteria=formNumber
(Publication 970 for 2009 not yet available as of 1/12/10)

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