Information about tax form 1098-T Form 1098-T, 1098, 1099, W-2 and 1042-S software and tax forms.

1098-T Frequently Asked Questions

Why have I received Form 1098-T?
Tax benefits are available to help families meet the cost of post-secondary education. These tax benefits are intended to help students and their parents as well as all working Americans to fulfill a variety of educational objectives.

You (or your parents) may use Form 1098-T to determine if you/they qualify for a 2007 Tax Credit. There are two credits available, the Hope Scholarship Credit and the Lifetime Learning Credit. For more information on these credits see the IRS Tax Topic 605 at http://www.irs.gov/taxtopics/tc605.html.

Keep in mind your Educational Institution sends all students a 1098-T tax form statement but is not in a position to give tax advice. Please speak to your accountant or tax attorney if needed.

What should I do now that I've received my Form 1098-T?
First you should examine the form to check that your Social Security Number, Name, and Address information are all correct.

Youíll then want to keep the form with your tax records to use when preparing your 2007 Tax Return or give a copy to the individual who can claim you as a dependent on their 2007 Tax Return (i.e. parent).

What if changes are needed to my Form 1098-T?
If any changes are needed, use the contact number/information provided on the form under the name and address of your school.

If you received your 1098-T in a postcard format, you may also complete the CHANGE OF ADDRESS card and mail it in to your school.

What exactly does the information in the boxes mean on my Form 1098-T?
You may reference the instructions included with your form for an explanation of the information included in each box.

For an additional copy of the 1098-T Instructions for Student, see page 4 of the following document: http://www.irs.gov/pub/irs-pdf/f1098t.pdf

Why aren't there money amounts listed in BOTH boxes 1 and 2?
Your educational institution is given the option to report EITHER amounts paid OR amounts billed, depending on your school's accounting system.

Is there one IRS Publication which gives information on all Educational tax issues, including Form 1098-T?
Yes, youíll want Publication 970: Tax Benefits for Education. You may download via the following link: http://www.irs.gov/pub/irs-pdf/p970.pdf.

How exactly is Form 1098-T relevant to my tax return?
You or the individual who can claim you as a dependent may be able to claim an Education Credit on their U.S. Individual Income Tax Return (Form 1040 or Form 1040A).

Here is a link to download Form 1040: http://www.irs.gov/pub/irs-pdf/f1040.pdf See line 50 for Education Credits.

Here is a link to download Form 1040A: http://www.irs.gov/pub/irs-pdf/f1040a.pdf See line 31 for Education Credits.

What are the Education Credits I may be eligible for and how do I apply?
There are two Education Credits you may be eligible for: The Hope Credit OR the Lifetime Learning Credit.

If applying for either credit, you will need to complete and attach IRS Form 8863 to your Tax Return. You may download the form via the following link: http://www.irs.gov/pub/irs-pdf/f8863.pdf. Information on both Credits is included in the instructions on pages 2-4.

For additional information on the Hope Credit and the Lifetime Learning Credit, you may reference Publication 970, Tax Benefits for Education via the following link: http://www.irs.gov/pub/irs-pdf/p970.pdf. See Section 2 for Hope Credit and Section 3 for Lifetime Learning Credit.

The information provided in this web page is NOT tax advice. It is offered only as general information and no assurances are made or liability assumed as to the accuracy thereof. Please consult a qualified tax expert for advice on computing, claiming, or determining qualification for any tax benefit mentioned in this web site.

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