Higher Education Tax Credits and 1098-T Forms

Students and families may be eligible to claim a tax credit on their federal income tax return for a portion of their tuition costs. There are two types of credits and they are mutually exclusive for each student in the same year. One is called the Hope credit and it entitles the taxpayer to a 100% tax credit for the first $1,100 of tuition and required fees less grants and scholarships and a 50% credit on the second $1,100.  The other is called the Lifetime Learning tax credit and it entitles the taxpayer to a 20% tax credit for the first $10,000 of tuition and required fees less grants and scholarships.  Both credits are phased out over certain income levels and have some other restrictions.

1098-T Forms

The tax law authorizing these tax credits required colleges and universities to report information on enrolled students to the Internal Revenue Service. The information is reported on a 1098-T form, a copy of which is mailed to the home billing address for all students in January. Students and families may obtain copies of the 1098-T form and additional information at www.1098-T.com

Please note that the amounts reported on a student's 1098-T form represent the amount billed for qualified tuiton and the amount of grants and scholarships awarded to the student that were administered by the university. If families and students need information regarding cash payment amounts made during the year, please request a detailed statement of financial transactions from Travis Dox. His e-mail address is tdox@stlawu.edu and his phone number is 315-229-5569.

More Information

For more information on these tax credits and guidance on reporting scholarships, please refer to the IRS publications  IRS Publication 970-Tax Benefits for Higher Education.