University of Iowa students may get tax break - KWWL - Eastern Iowa Breaking News, Weather, Closings

University of Iowa students may get tax break

IOWA CITY (AP) -- University of Iowa students may be in for a tax break.

The Internal Revenue Service has designated a "Midwest Disaster Area," which includes the University of Iowa's Iowa City campus. The designation means that qualified taxpayers can receive a larger education tax credit.

University spokesman Steve Parrott says the school wants to make sure that students are aware of the credit. But he says school officials can't provide tax advice.

The IRS has expanded the definition of qualified expenses for students attending a university in the Midwest Disaster Area to include room and board.

Qualified students can claim the greater of the allowance for room and board used for federal financial aid or they can claim the actual amount charged for residing in University Housing.

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