Education Tax Credits & 1098-T
Education Tax Credits
American Opportunity (Hope Credit extended) and the Lifetime Learning Credit
Education tax credits can help offset the costs of education. The American Opportunity (Hope Credit extended) and the Lifetime Learning Credit are education credits you can subtract in full from the federal income tax, not just deduct from taxable income. These incentives come in a couple of forms: tax credits, which directly reduce the amount of tax you are liable for, and tax deductions, which reduce the amount of income on which you pay taxes.
Helpful information can be found at the following websites:
Tax Credit Eligibility Tool
IRS—Am I Eligible to Claim an Education Credit?
1098-T Form Overview
The 1098-T is a federal tax form that details what was paid or billed to the school for the calendar year. It is used to help determine whether you are eligible for certain US federal tax deductions and/or tax credits for your educational expenses.
1098-T forms are mailed to eligible students by January 31, each year and may also be accessed electronically in CASHNet. Please note: not all students are eligible to receive a 1098-T. You may set up authorized user access to CASHNet. Further information on setting up an authorized user is located at Manage Your Student Account.
- If the total grants and scholarships for the calendar year are more than the total of tuition and applicable fees then you may not be eligible for a 1098-T form.
- International Students are not eligible for a 1098-T form.
- In accordance to federal regulations institutions beginning with the 2018 tax year, institutions are now required to report Payments Received from Qualified Tuition and Related Expenses in Box 1. (Previously, institutions could choose to report in Box 1 - Payments Received from all sources during the calendar year or report in Box 2 - Amounts billed for the selected year for qualified tuition and related expenses; SAIC had been using Box 2 - Amount Billed).
Per 1098-T Instructions for 2018:
- Box 1. Payments Received for Qualified Tuition and Related Expenses
- Enter the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year. The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year that relate to the payments received for qualified tuition and related expenses during the same calendar year. The amount reported is not reduced by scholarships and grants reported in box 5. Include in this box the receipt of a payment of past-due qualified tuition or related expenses from a previous calendar year, but only if the educational institution previously billed the student for such amount(s).
- Box 2. Reserved
Please consult your tax accountant for assistance with the 1098-T form and your education tax credit eligibility. You may wish to request a tuition and fees statement from SAIC for the tax year by calling 312.899.7443 or the Student Financial Services office at 312.629.6600.