Several 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.
If you lose or don’t receive your 1098T statement you can print a copy off of Pipeline.
Instructions for Pipeline: Enter your access id and password, select the “Student” tab. Using the menu located on the left select “More Student Services”, select “Student Academic and Financial Records”, then select “Tax Notification”.
The following is a basic summary of the available Education Credits and Deductions. Please note that a student who is eligible to claim either the American Opportunity Tax Credit or the Lifetime Learning Credit or the Higher Education Deduction may only use their qualified expenses towards one. Please consult with your tax advisor to determine eligibility and which to claim.
American Opportunity Tax Credit (formerly the Hope Scholarship Credit)
A tax credit equal to all of the first $2,000 of tuition and fees (less scholarships, grants and tax-free tuition benefits) plus 25% of the next $2,000 of tuition and fees is available to parents of dependent students or to students who are not claimed as dependents on their parents' return. The maximum credit is $2,500 for each eligible student. The credit phases out for higher-income taxpayers - please consult your tax advisor to determine your eligibility for this credit. The credit can be claimed for four tax years and applies only to the first four years of post-secondary education. Students must be enrolled at least half-time in a program that leads to a degree, certificate, or other educational credential during at least one academic period that begins during a tax year. Students cannot have had a drug felony conviction in a year that the credit applies. Education expenses paid before 2018 are eligible for the American Opportunity Tax Credit.
Lifetime Learning Credit
This credit applies to tuition and fees for undergraduate, graduate and continuing education course work. A family can claim on its tax return a credit equal to 20% of $10,000 of educational expenses: a maximum benefit of $2,000 each tax year. The credit phases out for higher-income taxpayers - please consult your tax advisor to determine your eligibility for this credit. Eligible education expenses are offset by scholarships, grants and other tax-free tuition benefits. Education expenses paid on or after July 1, 1998 are eligible for the Lifetime Learning Credit.
Higher Education Deduction
For tax years beginning before 2014, eligible individuals can deduct higher education expenses for themselves, spouse or dependents. The deduction is not allowed if the qualified expenses are used for other deductions or credits. The deduction can’t exceed:
- $4,000 for taxpayers with modified AGI under $65,000 ($130,000 for joint filers; or
- $2,000 for taxpayers with modified AGI exceeding $65,000 ($130,000 for joint filers) but below $80,000 ($160,000 for joint filers); or
- $0 for taxpayers with modified AGI over $80,000 ($160,000 for joint filers).
The deduction for higher education expenses is allowed for any tax year only to the extent the qualified tuition and related expenses are for enrollment at a higher education institution during that year. Higher education expense deductions can't be claimed by a taxpayer who files separately for the tax year; or may be claimed as a dependenton another's return; or is a nonresident alien for any part of the year.
Please speak to your accountant or tax attorney about whether you qualify for either tax credit or the deduction. Please pay special attention to the wording "less scholarships, grants and tax-free tuition benefits." If you received any of this type of aid within the tax year you will be claiming, you must give this information to your accountant or tax attorney.
Still have a question, comment or need help? Contact the University’s Student Accounts Receivable Office-Tuition section.