Taxpayer Information: 1098-Ts & Tax Credits
Overview of the New Credits
What You Can Expect From the University
When and Where the 1098-T Forms Will Be Mailed
Resources
View or Print IRS Form 1098-T 
In August 1997, the Taxpayer Relief Act of 1997 (TRA97) was signed into law. The law established the Hope Scholarship and Lifetime Learning tax credits. The 1998 tax year was the first year these credits were available.
TRA97 created two education tax credits for students and families:
- The Hope Scholarship tax credit may be claimed for qualified tuition and related expenses of each student in the tax payer's family who is enrolled at least half-time in one of the first two years of postsecondary education leading to a degree or certificate-granting program. The maximum credit a taxpayer may claim is $1,500 per number of students in the family within a taxpaying year.
- The Lifetime Learning tax credit may be claimed for qualified tuition and related expenses of all eligible family members. Unlike the Hope Scholarship tax credit, students are not required to be enrolled at least half-time in one of the first two years of postsecondary education. This credit is equal to 20 percent of qualified expenses up to a maximum of $5,000, annually through 2002. After 2002, the credit is equal to 20 percent of qualified expenses up to a maximum of $10,000.
What You Can Expect From the University
A 1098-T Form
IRS tax form 1098-T will be sent to students who incur tuition and fee expenses. The University will also file the forms with the IRS. Taxpayers are not required to include the form with their tax return; it is to be retained for their records.
Qualified tuition and related expenses are the tuition and fees an individual is required to pay in order to be enrolled at or attend an eligible educational institution. Amounts paid for any course or other education involving sports, games, or hobbies are not eligible for the credit, unless the course or other education is part of the student's degree program. Charges and fees associated with room, board, student activities, athletics, insurance, books, equipment, transportation, and similar personal, living, or family expenses are NOT qualified tuition and related expenses.
We cannot advise you on how to claim the credit. There are many resources available to assist you in understanding these credits and how to claim them (see Resources below). For additional direction you may wish to seek advice from a professional tax advisor.
When and Where the 1098-T Forms Will Be Mailed
The forms will be mailed to your designated mailing address by February 1st. If no address is designated, they will be mailed to your permanent address. Please take a moment to make sure your address is current. You may update your address in person at the Registrar's Office, Davis Hall, Room 129.
You can also view your 1098-T online after February 1st by clicking here.
- Bursar Services: (817) 272-2172
- The Taxpayer Relief Act of 1997
- Internal Revenue Service (IRS): www.irs.gov
- IRS Publication 970 - Tax Benefits for Higher Education
- IRS Notice 97-60- Consumer Guidance on Education Tax Incentive
- IRS Notice 98-59 - Part III - Administrative, Procedural and Miscellaneous
- IRS Form 8863 - Educational Credits (Hope and Lifetime Credits)
Reviewed/Revised 10/26/08
