Monday, February 4, 2013

OneStop - 1098T Tax Form information

Hello Parents,

The College has mailed the 2012 1098T Student Tax Forms in mid January, 2013 to students' home address.  This form will assist the students and families in preparing their income taxes.  Students who had a registration in any term during 2012 received the 1098T.

Information about the 1098T Student Tax Form:
The Taxpayer Relief Act of 1997 (TRA97) created two education tax credits for students and families beginning in 1998.

Box 2 is the amount billed for the qualified tuition and related expenses during the 2012 calendar year.
Box 5 is checked if a portion of the qualified tuition and related expenses from box 2 pertains to the academic period that started after 2012 but was billed in 2012.

Tax benefit of the Hope credit
You may be able to claim a Hope credit of up to $2,500 for qualified education expenses paid for each eligible student.  A tax credit reduces the amount of income tax you may have to pay.  Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself.  The Hope credit is a nonrefundable credit.  This means that it can reduce your tax to zero, but if the credit is more than your tax the excess will not be refunded to you.  The Hope credit you are allowed may be limited by the amount of your income and your tax.

Tax benefit of the Lifetime learning credit
You may be able to claim a liftime learning credit of up to $2,00 for qualified education expenses paid for all students enrolled in eligible educational institutions.  There is no limit on the number of years the lifetime learning credit can be clained for each stuent.  A tax credit reduces the amount of income tax you may have to pay.  Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. The lifetime learning credit you are allowed may be limited by the amount of your income and your tax.

Use Form 8863 to claim either the Hope or Lifetime Learning Credit.  The form is available online at http://www.irs.gov/pub/irs-pdf/f8863.pdf or use the IRS Publication 970 Tax Benefits for Education.

For more inforamtion about TRA, go to http://www.css.edu/Administration/Finance-Department/Tax-Credit-Information.html
Please contact OneStop Student Services if you have questions about your tax form at onestop@css.edu or toll-free 1-877-287-8716.

CSS 1098T information U-tube video

The College of St. Scholastica does not provide personal tax advice.  To determine your eligibility for a higher education tax credit, please contact the IRS or your personal tax advisor.

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