Additional 1098-T resources
For an overview of the Hope Credit, Lifetime Learning Credit, and allowable tuition and fee tax deductions visit http://www.irs.gov/taxtopics/tc605.html. Not all students who pay qualified expenses are eligible for a tax credit. For example, both credits have an income cap. Students who have a Modified Adjusted Gross Income (MAGI) greater than or equal to $57,000 ($114,000 for those filing a joint return) are not eligible for the Hope or Lifetime Learning credits. Beginning in 2007, the amount of your Hope or Lifetime Learning credit is gradually reduced (phased out) if your modified adjusted gross income is between $47,000 and $57,000 ($94,000 and $114,000 if you file a joint return).
Chapter 35 of IRS Publication 17 provides a very clear explanation of the eligibility requirements and filing instructions for the Hope Credit and the Lifetime Learning Credit. You can access an electronic copy of this chapter at http://www.irs.gov/publications/p17/ch35.html. The information provided may help you determine if you may be eligible for a tax credit. If you are eligible for both, it will help you decide which to claim. Each student can only claim one of these tax credits per year. You are also prohibited from claiming a tuition and fees deduction and an education tax credit for the same student for the same year. Publication 17 includes a number of useful real-life examples.
Katrina Emergency Tax Relief Act of 2005. This Act provides tax relief for persons affected by Hurricane Katrina. Under the Act, you may be able to claim an education credit. See Publication 4492 for further information.
References:
• www.irs.gov - Internal Revenue Service webpage
• http://www.irs.gov/publications/p17/ch35.html - Eligibility and Filing Instructions
(IRS Publication 17 Chapter 35)
• http://www.irs.gov/taxtopics/tc605.html - Education Credits explanation
• http://www.irs.gov/individuals/article/0,,id=121452,00.html - Comparison of Education Credits
• http://www.irs.gov/faqs/faq7-4.html - IRS Frequently Asked Questions and Answers
Useful information:
• IRS Tax Info: (800) 829-1040
• NLU FEIN (federal tax identification number): 36-2167804
Questions?
Before contacting the NLU Office of Student Finance please check the Frequently Asked Questions section as you may find the answer to your question there.
E-mail: NLU-1098T@nl.edu
Phone: (800) 443-5522 ext 5878
Note: Please be advised that NLU is prohibited from providing legal, tax, or accounting advice to students and we are not responsible for any use you make of this information.
