What is Form 1098-T?
IRS Form 1098-T is a document issued by your U.S. school to report the amount you paid for tuition and related school expenses during the year. This form is crucial for claiming education tax credits, which can significantly reduce your tax liability.
Who Receives Form 1098-T?
Most students enrolled at least half-time in a college, university, or other post-secondary school will receive Form 1098-T. If you or your parents are paying for your education, you should expect to receive this form.
How to Use Form 1098-T for Education Credits
- Obtain the form: Your school will send you Form 1098-T if you paid tuition or related expenses.
- Check Box 1: This box shows the amount you paid for tuition and fees.
- Determine eligibility: You may be eligible for the American Opportunity Credit (AOTC) or Lifetime Learning Credit (LLC).
- Claim the credit: When filing your taxes, use Form 8863 to claim your education credit. Attach Form 1098-T to your tax return.
Information Included on Form 1098-T
- Payments Made: The total amount you paid for tuition and fees.
- Scholarships or Grants: The amount of scholarship or grant money you received.
- Other Information: Details about student status, insurance reimbursements, and adjustments.
What to Do if You Didn’t Receive Form 1098-T
If you didn’t receive Form 1098-T, contact your school’s financial aid office. There may be several reasons why you didn’t receive it, such as full scholarship coverage or low tuition payments.
Correcting Errors on Form 1098-T
If you find errors on your Form 1098-T, contact your school’s financial aid office to request a correction.
Claiming Education Credits Without Form 1098-T
If you can’t obtain Form 1098-T, you may still be able to claim education credits by providing other documentation, such as receipts or statements from your school.
Losing Form 1098-T
Contact your school’s financial aid office to request a replacement copy of Form 1098-T.
Impact of Scholarships on Education Credits
Scholarships used to pay for qualified education expenses generally don’t count as taxable income. However, you cannot claim education credits for expenses covered by scholarships.
Remember: Form 1098-T is a valuable tool for claiming education tax credits. By understanding this form and following the proper procedures, you can potentially save money on your taxes.
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