Education Tax Credit
The American opportunity tax credit is a credit for qualified education expenses paid for an eligible student for the first four years of higher education.
The maximum credit per student is $2,500 (100 percent of the first $2,000 and 25 percent of the next $2,000 of qualified education expenses).
Use IRS Form 8863. It is available on the IRS website.
Qualified education expenses include amounts spent on books, supplies, and equipment needed for a course of study, whether or not the materials are purchased from the educational institution as a condition of enrollment or attendance.
The lifetime learning credit is available to students in all years of postsecondary education and for courses to acquire or improve job skills.
Qualified education expenses include only amounts for books, supplies, and equipment required to be paid to the institution as a condition of enrollment or attendance.
Yes, student loans are considered your personal funds; they are not considered financial aid or scholarship money. You are still qualified to claim the tax credit if you meet the requirement.
The tuition and fees deduction is for taxpayers who cannot take the American opportunity or lifetime learning credits because their income is too high. To learn more about the tuition and fees deduction, please see IRS Form 8917.
Contact your loan servicer and request form 1098-E.
If you need corrections to your Form 1098-T for the current year, please contact Seattle Colleges Business Office at firstname.lastname@example.org or 206-934-6300. Include your contact information and details of what needs to be corrected. After we review your record, you may request that a corrected Form 1098-T be mailed to you.
Any financial aid or scholarship money not used to pay for tuition or education expenses is taxable income; you may have to report it as income when you file a tax return.
No. If you are a nonresident student and on visa status at Seattle Colleges, you will not receive a Form 1098-T; you do not qualify for tax credit. To learn more, please see IRS Publication 970.