American Opportunity & Lifetime Learning Tax Credit Information
The American Opportunity & Lifetime Learning Tax Credit takes the place of the HOPE Credit. The HOPE credit is for tax years 2008 and prior. The Lifetime Learning Tax Credit remains.
IRS Publication 970, Tax Benefits for Higher Education will assist taxpayers in determining their eligibility for the tax credits. You may obtain this Publication from any IRS office, or download from the Internet at irs.gov/forms_pubs/pubs/p970toc.htm. The IRS addresses specific questions that taxpayers may have concerning their eligibility for tax credits https://www.irs.gov/publications/p970/ch03.html
In addition, if your have not supplied your social security number to Delaware Valley University, please complete the IRS FORM W-9S part 1, which can be found at http://www.irs.gov/pub/irs-pdf/fw9s.pdf.
Form 1098-T will be mailed to students by Jan. 31st. It is informational only. It alerts the student that they may be eligible for federal income tax education credits. For students with active credentials, this tax information can be viewed online. Log into Student Self-Service > Tax Information > consent to receive your 1098T in electronic format. You will not be able to view and print your 1098T online if you withhold your consent. For students who no longer have active credentials, the form will also be mailed to the current address listed in the University records. The form cannot not be emailed or faxed.
In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) we billed to your student account for the calendar (tax) year. Due to a chance to instiutional reporting requirements under federal law,beginning with tax year 2018, we will report in Box 1 the amount of QTRE you paid during the tax year.
Depending on your income (or your family’s income, if you are a dependent), whether you were considered full or half-time enrolled, and the amount of your qualified educational expenses for the year, you may be eligible for a federal education tax credit. (You can find detailed information about claiming education tax credits in IRS Publication 970, page 9.)
The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863 – the form used for calculating the education tax credits that a taxpayer may claim as part of your tax return.
Delaware Valley University is unable to provide you with individual tax advice, but should you have questions, you should seek the counsel of an informed tax preparer or adviser.
The 1098-T form is the information return that colleges and universities are required to issue for the purpose of determining a student's eligibility for the American Opportunity Credit and Lifetime Learning education tax credits. Delaware Valley University reports charges for amounts billed for qualified tuition and related expenses, prior year adjustments, and grants and scholarships.
You should receive a Form 1098-T if you were a student and had eligible transactions during the tax (calendar) year.
Delaware Valley University will mail Form 1098-T's by January 31.
The University will mail Form 1098-T to the student at the student's home address as listed in the University's records as of the January date the forms are prepared.
The 1098-T is based on calendar year transactions, and student account billing is triggered by registration. If you registered for the spring term in November or December, and if all of your financial aid was disbursed to your account in November or December, then your qualified tuition and expenses and scholarships and grants for the spring term were included on the last year's 1098-T.
For students with active credentials, this tax information can be viewed online. Log into Student Self-Service > Tax Information > consent to receive your 1098T in electronic format. You will not be able to view and print your 1098T online if you withhold your consent.
Yes, being that Section 6050S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires institutions to file information returns to assist taxpayers and the IRS in determining eligibility for the American Opportunity Credit and Lifetime Learning education tax credits. The annual deadline for the University to file the required tax information electronically is April 2, although data may be transmitted earlier as circumstances allow.
We advise that you keep it for your records. Since the University sends your 1098-T information to the IRS, there is no need to attach a copy of the form to your tax return. The information contained in the 1098-T will help you determine if you may claim the eligible education credits using IRS Form 8863.
Note: Since 2018 is the first year of the payment reporting method, Box4 on 2018 1098-T will be empty.
| Box 1 Amounts Received for Qualified Tuition and Related Expenses |
Beginning in tax year 2018, this box is the total amount paid for Qualified Tuition and Related Expenses in a tax year. Book expenses, room, board, transportation, insurance premiums and medical expenses are not qualified expenses and are not included in the QTRE total. Box 1 cannot exceed the amount of QTRE and is not reduced by scholarships and grants reported in Box 5.*** |
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Box 2 |
Beginning in tax year 2018, the amount of qualified tuition and related expenses billed to a student in a tax year will not be reported on the 1098-T. |
| Box 3 Change of Reporting Method Checkbox |
This box will be checked for the 2018 tax year as the reporting method has changed from Box 2 to Box 1. |
| Box 4 Adjustments Made for a Prior Year |
Any changes to a prior tax year that resulted in a reduction of payments toward previously reported qualified tuition will be reported in Box 4. For example, if the University reports $500 in payments in 2018, but a student retroactively drops a course from 2019 in the 2020 year, the dropped value will appear in Box 4. |
| Box 5 Scholarships and Grants |
Box 5 reports the amount of all scholarships and grants disbursed in a calendar year towards cost of attendance. Scholarships and grants are defined by the IRS, so may include items that you do not recognize as a scholarship or grant such as military benefits and payments from third party organizations. Amount reported on Box 5 may exceed amount reported on Box 1. |
| Box 6 Adjustments to Scholarships or Grants for a Prior Year |
Similar to Box 4, Box 6 reports adjustments to previously reported scholarships and grants from a prior year. If a scholarship or grant is retroactively revoked, the value of the scholarship or grant will be reported in Box 6. |
| Box 7 If Amounts in Box 1 or 2 include Amounts for an Academic Period beginning Jan-Mar in the next year |
The box will be checked if the student registered for classes in the tax year, but the classes do not start until January-March in the next year year. |
| Box 8 Check if at Least Half-Time Student |
This box will be checked if the student was enrolled for at least 6 credits in a term in the tax year. |
| Box 9 Check if a Graduate Student |
This box will be checked if the student was enrolled in a graduate or doctoral program in the tax year. |
| Box 10 Insurance Contract Reimbursements or Refunds |
This box will be blank since Delaware Valley University is not an insurer. |
***The tax year follows the calendar year (January-December). As a result, the academic year runs across two tax years. The amount reported in Box 1 includes payments for qualified tuition and expenses, not to exceed the amounts of qualified tuition and fees that were billed to a student in the tax year
Delaware Valley University cannot determine if you are eligible for either of the credits or the amount of credit for which you may qualify. Please consult your tax advisor or IRS Publication 970, Tax Benefits for Higher Education, for more information. This publication may be downloaded and printed from the IRS website. The IRS offers free forms, publications and other information at each local IRS office and through the following sources:
Telephone: 1.800.TAX.FORM
Links: http://www.irs.gov/pub/irs-pdf/p970.pdf
NOTE: The information provided here is not tax advice. It is offered only as general information for Delaware Valley University students and their familes. Please consult a qualified tax expert for advice on computing, claiming, or determining qualification for any tax benefit.