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Hope Lifetime Tax Credit 1098T
Please visit www.irs.gov or call 1-800-TAX-FORM for more in-depth information or to get Form 8863 (PDF).
Several new 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.
The following is a basic summary of the Hope Scholarship and Lifetime Learning Tax Credit. Beginning January 31, 2005, you may print your 1098T (PDF) via the WEB. UNLV is not in a position to provide tax advice; please consult your accountant or tax preparer for assistance.
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Hope Scholarship Credit
A tax credit equal to all of the first $1,000 of tuition and fees (less scholarships, grants and tax-free tuition benefits) and half of the next $1,000 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 of $1,500 will increase for inflation after 2001. The Hope credit can be claimed only for two tax years and applies only to the first two 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 on or after January 1, 1998 are eligible for the Hope credit.
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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 $5,000 of educational expenses: a maximum benefit of $1,000 each tax year. Eligible education expenses are offset by scholarships, grants and other tax-free tuition benefits. Starting in 2003, the amount of eligible education expenses increases to $10,000, resulting in a $2,000 maximum tax credit each year. Education expenses paid on or after July 1, 1998 are eligible for the Lifetime Learning Credit.
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Please speak to your accountant or tax attorney about whether you qualify for either tax credit. 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? Send to: Cashiering and Student Accounts |
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