Tax Form 1098-T Information

You may have already received a 1098-T form in the mail. This form is used to claim a tax credit for higher education. You can use the links below if you have questions about completing your form. You will not receive a 1098-T form if your tuition fees were waived by a Board of Governor's Grant, a K-12 fee waiver, or a Guaranteed Transfer Option waiver.

Overview of the Tax Credits

In August 1997, the Taxpayer Relief Act of 1997 (TRA97) was signed into law. This law established the Hope and Lifetime Learning tax credits. The 2007 tax year is the tenth year these credits will be available. TRA97 created two education tax credits for students and families:

• The Hope Tax Credit provides up to $1,500 per student for qualified tuition and related expenses for the first two years of post secondary education. To be eligible, students must be enrolled at least half-time in a degree or certificate-granting program.
  
  
• The Lifetime Learning Tax credit is more broadly applicable to any post secondary education to acquire or improve job skills. It provides a credit equal to 20% of qualified expenses of no more than $2,000 per taxpayer (i.e., family).

Both the Hope tax credit and the Lifetime Learning tax credit are available for expenses paid on or after January 1, 2007 through December 31, 2007, for academic periods beginning on or after January 1, 2007.

NOTE: It is up to each taxpayer to determine eligibility for the credits and how to calculate them. MSJC cannot advise you on how to claim the credit.

1098-T

The 1098-T is an informational statement letting you know what information has been sent to the IRS. A 1098-T is sent to each student who was billed for or received a refund for college-credit classes held in 2007. The forms were sent to the students' address on file with MSJC as of January 2008. MSJC is required by the IRS to issue 1098-Ts.

Last Updated: January 30, 2008

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