Education Tax Credits

How do I obtain my 1098-T Form?

Log in to your MyViking account
Select "Student Planner" from "Applications"
Press the "Home" button in the top-left corner
Select "My Documents" from these options
Select the checkbox that says "Include Completed Items"
The form should be listed as "20XX Form 1098-T"
Click "View"

1098-T Amounts Billed for Calendar Year

Grayson College utilizes a registration system that reports qualified educational expenses under the "Amounts Billed" method (Box 2). In order to obtain your amounts paid in the calendar year, you may log on to the Portal and navigate to the Make Payments/ Manage Payments tab to view account activity and payments made during 2014.

The Taxpayer Relief Act of 1997 (Public Law 105-34 (111 Stat. 788 (TRA '97)) added section 25A to the Internal Revenue Code to provide the Hope Credit (Currently modified as the American Opportunity Tax Credit by the American Recovery and Reinvestment Act of 2009) and the Lifetime Learning Credit (education credits). On November 17, 1997, the IRS published Notice 97-60 (1997-46 I.R.B 8) to provide general guidance on the higher education tax incentives enacted by TRA '97. In general, the American Opportunity Tax Credit and the Lifetime Learning Credit allow taxpayers to claim a credit against their federal income taxes for certain post-secondary educational expenses. Additionally, up to 40 percent of the American Opportunity Tax Credit is now a refundable credit.

TRA '97 also added section 6050S to the Code, which requires eligible educational institutions to file information returns to assist taxpayer and the IRS in determining the education credit that taxpayers may claim under section 25A.

The following is general information only and should not be taken as tax advice. Please consult the IRS or a tax professional, or see the Resources and Frequently Asked Questions for more information.

Thanks to the American Recovery and Reinvestment Act of 2009 (ARRA), the Hope Credit has been expanded and renamed the American Opportunity Tax Credit. The American Opportunity Tax Credit is now available for the first four years a student is enrolled in Post-secondary education and are carrying at least half-time workload while pursuing an undergraduate degree, certificate, or other recognized credential.

The American Opportunity Tax Credit is available to eligible taxpayers on a per-student basis if you have qualified expenses paid in the current tax year as a student enrolled at or attending an eligible institution. You cannot claim credits if your filing status is married and filing separately or you are claimed as a dependent on another person's tax return (such as your parents' return). The full amount of the American Opportunity Tax Credit is available to married taxpayers filing jointly with an adjusted gross income (AGI) of $180,000 or less or to single taxpayers with an AGI of $90,000 or less. Married taxpayers with a combined AGI of $180,000 or greater (and single taxpayers with an AGI of $90,000 or greater) are ineligible for this credit.

The amount that may be claimed as a credit is generally equal to: (1) 100 percent of the first $2,000 of the taxpayer's out-of-pocket expenses for each student's qualified tuition and related expenses; plus (2) 25 percent of the next $2,000 of the taxpayer's out-of-pocket expenses for each student's qualified tuition and related expenses. Thus, the maximum credit a taxpayer may claim for a taxable year is $2,500 multiplied by the number of students in the family who meet the eligibility requirements described above. Qualified tuition and related expenses has been expanded to now include course materials (books, supplies, equipment) whether or not they are purchased from an eligible institution as a condition of enrollment. Up to 40% of the American Opportunity Tax Credit is refundable. This means that even if you owe no taxes, you may still qualify to have a portion of the American Opportunity Tax Credit refunded.

The following are not qualified tuition and related expenses: (1) amounts paid for any course or other education involving sports, games or hobbies (unless the course or other education is part of the student's degree program); (2) charges and fees for room, board, student activities, athletics, insurance, books, equipment, transportation (and similar personal, living or family expenses). If you or the student claim a deduction for higher education expenses, such as on Schedule A or Schedule C (Form 1040), you cannot use those expenses when figuring your education credits. Also, higher education expenses paid with a tax-free scholarship, Pell Grant or employer-provided educational assistance cannot be used when figuring your education credits. Eligible expenses for this credit are offset by scholarships, grants, and other tax-free tuition benefits. Nonresident aliens generally are ineligible to claim the American Opportunity Tax Credit.

If the taxpayer is claiming a Lifetime Learning Credit for a particular student, none of that student's expenses for that year may be applied toward the American Opportunity Tax Credit.

The Lifetime Learning Credit is offered to encourage people to improve or acquire new job skills. This credit applies to tuition and fees for undergraduate, graduate, and continuing-education courses. Qualified tuition and related expenses are tuition and fees a student must pay to be enrolled at or attend an eligible educational institution. The following are not qualified tuition and related expenses: (1) amounts paid for any course or other education involving sports, games or hobbies (unless the course or other education is part of the student's degree program); (2) charges and fees for room, board, student activities, athletics, insurance, books, equipment, transportation (and similar personal, living or family expenses). If you or the student claim a deduction for higher education expenses, such as on Schedule A or Schedule C (Form 1040), you cannot use those expenses when figuring your education credits. Also, higher education expenses paid with a tax-free scholarship, Pell Grant or employer-provided educational assistance cannot be used when figuring your education credits. Part-time and full-time students are eligible for the Lifetime Learning Credit. Unlike the American Opportunity Tax Credit, you are not required to be enrolled at least half-time in one of the first four years of post-secondary education. You may be eligible to receive a partial credit, even if you are taking only a single course at a community college.

You are eligible for the Lifetime Learning Credit if you have qualified expenses paid in 2014 as a student enrolled at or attending an eligible educational institution. The full amount of the Lifetime Learning Credit is available to married taxpayers filing jointly with an adjusted gross income (AGI) of $127,000 or less and to single taxpayers with an AGI of $63,000 or less. Married taxpayers with a combined AGI of $127,000 or greater and single taxpayers with an AGI of $63,000 or greater are ineligible for these credits. You cannot claim credits if your filing status is married and filing separately or you are claimed as a dependent on another person's tax return (such as your parents' return). Taxpayers cannot use both the American Opportunity Tax Credit and Lifetime Learning Credit for the same student in a single year.

The amount that may be claimed as a credit is equal to 20 percent of the taxpayer's first $10,000 of out-of-pocket qualified tuition and related expenses for all the students in the family. The maximum credit a taxpayer may claim for a taxable year is $2,000. These amounts are not indexed for inflation. Eligible expenses for this credit are offset by scholarships, grants, and other tax-free tuition benefits. This credit may be claimed for an unlimited number of years.

The Lifetime Learning Credit is nonrefundable. If the taxpayer is claiming an American Opportunity Tax Credit for a particular student, none of that student's expenses for that year may be applied toward the Lifetime Learning Credit.

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.

For more information, please read the Tax Credit Frequently Asked Questions.