IRS Form 1098-T is a tuition payment statement that may assist taxpayers in calculating any education tax credit for which they may be eligible.
Qualified tuition and related expenses (QTRE) are defined by the IRS as “tuition and fees required for enrollment or attendance.” In general, not all charges incurred during a calendar year will meet IRS requirements which is why the amount in Box 1 may not match the total amount you paid for the year.
Options for receiving your 1098-T
The University of Arkansas for Medical Sciences has partnered with ECSI to provide your 1098-T Tuition Statement. If you completed the 1098T electronic consent, you should have received an email to access your 1098T. If you did not give consent to receive it electronically, a paper copy has been mailed.
Access your 1098-T now
Taxpayer Relief Act of 1997
The Taxpayer Relief Act of 1997 created several new tax benefits for families who are saving for, or already payment, higher education costs or are repaying student loans.
A few of the benefits provided by this Act include the Hope Credit, Lifetime Learning Credit, and a student loan interest deduction.
The information provided is not intended as legal or tax advice. Individuals should obtain IRS Publication 970, Tax Benefits for Higher Education, or contact a tax practitioner about personal income tax situations.
You may be entitled to a tax credit resulting from the Taxpayer Relief Act of 1997. The Hope Credit is available to first and second year, full time undergraduate students. A tax credit of 100% of the first $1,000 and 50% of the second $1,000 (for a total of up to $1,500) spent for qualified tuition and fees (less scholarships, grants, and other tax-free educational assistance) can be used for each of the student’s first two years. The amount a taxpayer may claim as an American Opportunity Credit is gradually reduced for taxpayers with modified adjusted gross income (AGI) between $40,000 and $50,000 (between $80,000 and $100,000 for married taxpayers filing jointly). Taxpayers with income levels in excess of these amounts may not claim the credit.
Lifetime Learning Credit
Taxpayers may be able to claim the Lifetime Learning Credit, which requires the student to be enrolled in at least one post-secondary course at an eligible institution. Students or parents may claim a 20% tax credit for the first $5,000 of tuition and required fees paid each year (for all students in the family). The Lifetime Learning Credit can be claimed for tuition and required fees minus any grants, scholarships, or other tax-free educational assistance. The maximum credit is determined on a per-taxpayer (family) basis, regardless of the number of post-secondary students in the family. The amount a taxpayer may claim as a Lifetime Learning Credit is gradually reduced for taxpayers with modified adjusted gross income (AGI) between $40,000 and $50,000 (between $80,000 and $100,000 for taxpayers filing jointly).