Tax Credit 1098T

Internal Revenue Service Treasury Regulation

To comply with federal laws, we are required to ask for your Social Security number (SSN) or individual taxpayer identification number (ITIN). We will use your SSN/ITIN to report Hope Scholarship/Life Time tax credit, to administer state/federal financial aid, to verify enrollment, degree and academic transcript records, and to conduct institutional research.

If you do not submit your SSN/ITIN , you will not be denied access to the college; however, you may be subject to civil penalties (refer to Internal Revenue Service Treasury Regulation 1.6050S-1(e)(4) for more information). Pursuant to state law and federal law (Family Educational Rights and Privacy Act), the college will protect your SSN from unauthorized use and/or disclosure.

Education Tax Credits

Hope Scholarship & Lifetime Learning Credits and Student Loan Interest Deduction.

In 1997, the Taxpayer Relief Act established two education tax credits and a deduction for student loan interest. The following is general information only and should not be taken as tax advice. Please consult the IRS or a tax professional for more information.

The IRS Form 1098-T is issued to all qualified students with tuition and fee expenses paid in 2014. The form is mailed to the student's permanent address during the last week in January or may be printed from your NICOnline account.

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The parent, guardian, or student will be responsible for reporting to the IRS amounts actually PAID out-of-pocket or with borrowed funds during the 2015 tax year for qualified tuition and related expenses. The amounts reflected on the 1098-T form are only the qualified tuition and related expenses charged to your student account during the 2015 tax year. This is not necessarily the amount which was paid in the tax year. You must calculate what was actually paid in the tax year 2015 towards those charges. Please do not use the amounts on the 1098T when calculating what was paid in the tax year.


Amounts included in Box 5, "Scholarship and grants":
This represents the total of  scholarships or grants received and processed for
the calendar year.

Amounts of scholarships reported on your 1098-T are for determining eligibility for the
Hope credit and lifetime learning credit only, NOT for determining taxability
of such scholarships. Your scholarships may or may not be taxable, refer to IRS Publication 970.

 

Resources

The College cannot provide assistance regarding your eligibility or the calculation of the credit. The following Web sites have additional information that may be useful.
IRS Publication 970 - Tax Benefits for Higher Education
IRS Form 8863 to claim education tax credits
U.S. Department of Education