Under IRS guidelines, colleges and universities are required to provide students with information regarding educational expenses incurred during the calendar year. The College is required to issue to each student a federal Form 1098T which discloses information needed to complete individual income tax returns and to claim both the Hope and Lifetime Learning tax credits. These forms are prepared in January and are mailed no later than January 31st. Students should seek the advice and assistance of a tax preparation professional if they have questions regarding the proper use of Form 1098T.
Hope Tax Credit
The Hope Tax Credit is a federal tax credit that may provide tax relief for students. To qualify for the Hope Tax Credit, the student must be enrolled at least half time in a post-secondary school and must be seeking a degree or other recognized certificate. This credit applies to students enrolled in the first two years of postsecondary education and may be claimed only in two tax years. Students who have been convicted of a federal or state drug offense may not claim this credit.
Lifetime Learning Credit
The Lifetime Learning Tax Credit also may provide tax relief for some students. The credit is very similar to the Hope Tax Credit. However, students are not required to be seeking a degree or certification, nor are they required to be enrolled at least half time.