Education Tax Credits and 1098-T
Education Tax Credits
American Opportunity and the Lifetime Learning Credit
Education tax credits can help offset the costs of education. The American Opportunity 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:
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 Transact. Please note: not all students are eligible to receive a 1098-T. You may set up Payer access to Transact. Further information on setting up a Payer 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 with federal regulations, institutions are required to report Payments Received from Qualified Tuition and Related Expenses in Box 1.
- 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.