Category Archives: Taxes

2015-16 FAFSA

The 2015-16 FAFSA will be available as of January 1st, 2015.

If you will need Federal Financial Aid for the Summer ‘15, Fall ‘15 or Spring ’16 semesters, we highly recommend completing the FAFSA form now, via The Middlebury Institute’s school code is 001241.

Note that the priority deadline for the FAFSA is March 1st, 2015.

Feel free to contact us with any questions.


Office of Student Financial Services
Middlebury Institute of International Studies at Monterey
Casa Fuente Building
(831) 647-4119 Phone
(831) 647-6685 Fax


Tired of waiting for your annual 1098-T form to arrive in the mail?


Visit to find out how you can receive this year’s 1098-T form online.

This is a quick reminder that you can sign up now to receive this year’s 1098-T form online. Through the use of our service provider, students can consent to receive e-mail notification when the 2011 1098-T form is available.

Select the option to “Access My Record.” You will be prompted through a series of steps validating personal information.

Once securely logged into your personal account, a link is provided to receive forms online. Please read the information thoroughly and provide a current and valid e-mail address when prompted.

Upon creation of the 2011 1098-T form, you will receive an e-mail notifying you that the form is available on . You can print a copy for yourself, your parents, and your tax advisor.

If you signed up to get your form online last year, you do not need to enroll again.

Visit today.

Student Tuition Recovery Fund

California law requires that upon enrollment a fee be assessed relative to the cost of tuition (Education Code Section 94342). These fees support the Student Tuition Recovery Fund (STRF), a special fund established by the California Legislature to reimburse students who might otherwise experience a financial loss as a result of untimely school closure. Institutional participation is mandatory.

Students must pay the state-imposed fee for the Student Tuition Recovery Fund (STRF) if all the following apply:

  1. You are a new student who pays all or part of your tuition, and
  2. Your total charges are not paid by any third party payer such as an employer, government program or other payer unless you have a separate agreement to repay the third party.

You are not eligible for protection from the STRF and you are not required to pay the STRF fee if your total charges are paid by a third party, such as an employer, government program, or other payer and you have no separate agreement to repay the third party.

**STRF fees are $2.50 per $1,000 of tuition.**

Mandatory Exit Session for Graduating Students

Congratulations to our graduation class of 2010, on achieving a most admirable goal!  Your education!

As the recipient of a Federal Stafford Loan, you are required to complete an exit interview.  During this exit interview, you will learn about your rights and responsibilities as the consumer of a Federal Student Loan.  You will also learn about the various repayment options available to you, about loan consolidation, and loan deferment, forbearance and cancellation opportunities.

There will only be two exit interview sessions, so please make every effort to attend:

The first session will be: Tuesday, May 11th from 12 to 2pm in the Irvine Auditorium

The second session will be: Tuesday, May 11th from 5 to 6:30pm in B105

If you are not able to attend either session, please let us know ASAP.  If you are currently on IPSS, we will be holding a separate exit session in August when you return.

If you received a Federal Perkins Loan, you will be receiving an email from University Accounting Services directing you to their website to complete an online exit interview for your Perkins Loan. Please do not delete this email.  You are required to complete this form.   This is a SEPARATE process from the In-Person Exit Interview.  You are REQUIRED to complete both the online Perkins Exit Interview AND the in-person Stafford Loan Exit Interview before we will release your transcripts and/or diplomas.

You will need to bring an address book with you (or address information for three references) and your questions.  Remember, this is your chance to get all of your loan repayment and consolidation questions answered!

Tax Breaks for Higher Education

Can you believe that the government wants to give you a tax break for attending college? Well, they won’t give it to you if you don’t ask – so here are a few ways you, as a student, can “ask” for your tax money back.

1. Tuition and Fees Tax Deduction:

The Tuition and Fees Tax Deduction can reduce taxable income by as much as $4,000. This deduction is taken as an adjustment to income. You can claim this deduction even if they do not itemize deductions on Schedule A of Form 1040. This deduction may benefit taxpayers who do not qualify for either the Hope or Lifetime Learning Education Tax Credits.

Up to $4,000 may be deducted from tuition and fees required for enrollment or attendance at an eligible postsecondary institution. Personal living and family expenses, including room and board, insurance, medical and transportation, are not deductible expenses.

The exact amount of the Tuition and Fees Tax Deduction depends on the amount of qualified tuition and related expenses paid for you, a spouse, or dependent for whom the taxpayer can claim an exemption.

2.Lifetime Learning Credit:

The Lifetime Learning Credit is a tax credit available to individuals who owe taxes. The amount of the credit is subtracted from the taxes owed, rather than reducing taxable income as with a tax deduction. Individuals who do not pay taxes are not eligible for a Lifetime Learning credit. Taxpayers who owe less tax than the maximum amount of the Lifetime Learning tax credit for which they are eligible can only take a credit up to the amount of taxes owed.

The amount of the Lifetime Learning tax credit is 20% of the first $10,000 of qualified educational expenses paid for all eligible students. Therefore, the maximum amount of a Lifetime Learning tax credit is $2,000. The Lifetime Learning credit is available for all years of postsecondary education and for courses to acquire or improve job skills, unlike the Hope credit which is only available for two years.

The actual amount of the credit depends on a family’s income, the amount of qualified tuition and fees paid, and the amount of certain scholarships and allowances subtracted from tuition. This credit is family-based (up to $2,000 per tax return or $4,000 for Gulf Opportunity Zone students) rather than based on the number of dependents in a family as with the Hope credit.

3.Hope Scholarship Credit:

The Hope Scholarship is a tax credit, not a scholarship. Tax credits are subtracted directly from the tax a family owes, instead of being subtracted from taxable income like a tax deduction. A family must file a federal tax return and owe taxes to get this tax credit. A family cannot get a refund for the Hope credit if it does not pay taxes. A family that owes less tax than the maximum amount of the Hope tax credit for which it is eligible can only take a credit up to the amount of taxes owed.

For the 2007 tax year, a family may claim a tax credit up to $1,650 for each eligible dependent for up to two tax years (100% of the first $1,100 and 50% of the second $1,100 paid for qualified expenses). The Hope credit is available only until each student’s first two years of postsecondary education are complete. Gulf Opportunity Zone students may claim up to $3,300 (100% of the first $2,200 and 50% of the second $2,200) for the 2007 tax year.

The exact amount of the Hope credit also depends on a family’s income, the amount of qualified tuition and fees paid, and the amount of certain scholarships and allowances subtracted from tuition. The total credit is also based on how many eligible dependents are in the family, rather than a maximum dollar amount for the family as with the Lifetime Learning tax credit.

Is Financial Aid Taxable?!


Only scholarship amounts used to pay for only tuition and required fees are non-taxable. However, scholarship amounts used for room and board, travel, research, and equipment are taxable. In other words, if you received scholarships and/or grants in excess of the cost of tuition and fees, you’ll have to pay taxes on the amount that exceeded tuition and fees. If you fall into this category, you can expect to receive a 1098-T form from the cashiers office.

Eduational Grants

Monterey Institute Grants, Pell Grants, and Supplemental Educational Opportunity Grants (SEOG) are treated like scholarships and are tax-free if they are used to pay for qualifying tuition expenses. Money from these sources that is used for travel to and from school is taxable.

VA Benefits Payments

Any Veterans Benefits that you receive for education or training that are administered by the Department of Veterans Affair are tax-free.

New Year’s Resolution: Filing Your Tax Return

Do you owe Uncle Sam this year?

You may find that you are not “required” to file. Determine if you are required to submit a tax return now!

Does the IRS Owe You?

Then by all means…FILE! That’s the only way to get your money back. And we highly doubt any of you would want to miss out on those hard earned dollars. Download your tax forms.

Yes, Federal Work Study Students Pay Taxes Too!

Although your federal work study dollars are coming from the government, you may have to pay taxes on this income. However, these earnings are excluded from your earnings on the FAFSA form. Be sure to include your federal work-study earnings on Worksheet B whey you file the FAFSA form.