Education Tax Credits - Victoria College

Home

Education Tax Credits

How do I obtain my 1098-T Form?

Go to www.1098-t.com
Click on "Access You Record" in the menu on the left hand side
Follow the instruction provided under the link to access your 1098-t information
If you are enrolled in more than one school, select the year and school for which you would like to get the 1098-T form
Print information from two links: "View my 1098-T tax form" and "View my financial information"

1098-T: Amounts Billed for Calendar Year

Victoria College utilizes a registration system that reports qualified educational expenses under the “Amounts Billed” method (Box 2). In order to obtain your amounts paid in calendar year 2011, you may log on to the Pirate Portal and navigate to the “Make Payments/ Manage Payments” tab to view account activity and payments made during 2011.

American Opportunity Tax Credit & Lifetime Learning Credits

The Taxpayer Relief Act of 1997 (Public Law 105-34 (111 Stat. 788 (TRA '97)) added section 25A to the Internal Revenue Code to provide the Hope Credit (currently modified as the American Opportunity Credit by the American Recovery and Reinvestment act of 2009) and the Lifetime Learning Credit (education credits). In general, the American Opportunity Tax Credit and the Lifetime Learning Credit allow taxpayers to claim a credit against their federal income taxes for certain post-secondary educational expenses. Additionally, up to 40 percent of the American Opportunity Tax Credit is now a refundable credit. The following is general information only and should not be taken as tax advice. Please consult the IRS or a tax professional, or see the Resources and Frequently Asked Questions for more information.

The American Opportunity Tax Credit is available to eligible taxpayers on a per-student basis if you have qualified expenses paid in 2011 as a student enrolled at or attending an eligible educational institution. You cannot claim credits if your filing status is married and filing separately or you are claimed as a dependent on another person’s tax return (such as your parents’ return). The amount that may be claimed as a credit is generally equal to: (1) 100 percent of the first $2,000 of the taxpayer’s out-of-pocket expenses for each student’s qualified tuition and related expense; plus (2) 25 percent of the next $2,000 of the taxpayer’s out-of-pocket expenses for each student’s qualified tuition and related expenses. The maximum credit a taxpayer may claim for a taxable year is $2,500 multiplied by the number of students in the family who meet the eligibility requirements. Qualified tuition and related expenses has been expanded to now include course materials (books, supplies, equipment) whether or not they are purchased from an eligible institution as a condition of enrollment. Also, new for 2009, up to 40% of the American Opportunity Tax Credit is now refundable meaning that, in the event you owe no taxes, you may still qualify to have a portion of the American Opportunity Tax Credit refunded. The American Opportunity Tax Credit is allowable during the first 4 years of post-secondary education; however, if the taxpayer is claiming a Lifetime Learning Credit for a particular student, none of that student’s expenses for that year may be applied toward the American Opportunity Tax Credit. The following are not qualified tuition and related expenses: (1) amounts paid for any course or other education involving sports, games or hobbies (unless the course or other education is part of the student’s degree program; (2) charges and fees for room, board, student activities, athletics, insurance, books, equipment, transportation (and similar personal, living, or family expenses). AGI limitations apply to this tax credit based upon filing status; therefore, please consult the IRS or a tax professional to discuss your particular facts and circumstances to determine eligibility for this tax credit and appropriate qualified tuition and fees.

The Lifetime Learning Credit is offered to encourage people to improve or acquire new job skills. This credit applies to tuition and fees for undergraduate, graduate, and continuing-education courses. Qualified tuition and related expenses are tuition and fees a student must pay to be enrolled at or attend an eligible educational institution. The following are not qualified tuition and related expenses: (1) amounts paid for any course or other education involving sports, games or hobbies (unless the course or other education is part of the student’s degree program); (2) charges and fees for room, board, student activities, athletics, insurance, books, equipment, transportation (and similar personal, living or family expenses). If you or the student claim a deduction for higher education expenses, such as on Schedule A or Schedule C (Form 1040), you cannot use those expenses when figuring your education credits. Higher education expenses paid with a tax-free scholarship, Pell Grant, or employer-provided education assistance cannot be used when figuring your education tax credits. There is no minimum enrollment requirement or limit to the number of years the Lifetime Learning Credit is available. The amount that may be claimed as a credit is equal to 20 percent of the taxpayer’s first $10,000 out-of-pocket tuition and related expenses for all the students in the family. The maximum credit a taxpayer may claim for a taxable year is $2,000. Eligible expenses for this credit are offset by scholarships, grants, and other tax-free tuition benefits. AGI limitations apply to this tax credit based upon filing status; therefore, please consult the IRS or a tax professional to discuss your particular facts and circumstances to determine eligibility for this tax credit and appropriate qualified tuition and fees. The IRS Form 1098-T is issued to all students with tuition and fee expenses billed during calendar year 2011. The form is mailed to the student's mailing or permanent address of record during January. If you have questions regarding your 1098-T, please call 877-467-3821 for assistance.

Resources

The College cannot provide assistance regarding your eligibility or the calculation of the credit. The following web sites have additional information that may be useful.

Tax Credit Frequently Asked Questions

1. Why did I receive a 1098-T tax form? Am I eligible to claim the tax credit?

You received a form because higher education expenses may be eligible for federal tax benefits. Our records show that you were enrolled in courses at the College, which were billed during calendar year 2011.

Whether or not you may take advantage of these tax credits depends upon your individual facts and circumstances. The College cannot provide tax advice, so you may want to consult the IRS or a tax professional to find out more about the credits and your eligibility. Please see the resources below:

IRS Publication 970 - Tax Benefits for Higher Education
IRS Form 8863 to claim education tax credits
U.S. Department of Education

2. When and where will the 1098-T be mailed?

Forms will be mailed to the student's mailing or permanent address of record January. The mailing and/or permanent address may be verified by calling the Admissions and Records Office at (361) 485-6841.

3. Did you send me a 1098-T form? Why haven't I received my 1098-T form?

In certain situations, a 1098-T may not have been generated for you: Your student record did not reflect any amounts billed during calendar year 2011. Your VC ID may not be a valid SSN. We cannot report information to the IRS if we do not have a valid SSN. If you are an international student or if you need to change the SSN on record with the College, call the Admissions and Records Office at (361) 485-6841. If these situations do not apply to you, a 1098-T should have been generated and mailed to the student's mailing or permanent address.

4. Does the 1098-T form have to be attached to my tax return?

No. There is no requirement to attach the 1098-T form to your tax return.

5. My child attends VC and I need his/her payment information/My parents need a copy of my 1098-T form.

IRS 1098-T forms are sent to the student's mailing or permanent address. In order to protect student privacy rights guaranteed through the federal Family Educational Right to Privacy Act, the Business Office must have the student's permission to discuss financial information with any other party.

6. Why don't the tuition and fee payments reflected on my 1098-T form match my records?

When reviewing your records, please take into consideration actual payment dates in order to reconcile your records to the amounts on the form. The 1098-T form reflects amounts billed and refunds made in calendar year 2011. Please log into the Pirate Portal and navigate to the “Make Payments/ Manage Payments” tab to view account activity and payments made during 2011.

7. Why does my 1098-T form show zero amount paid?

The 1098-T form reflects amounts billed and refunds made in calendar year 2011. When reviewing your records, please take into consideration actual payment dates in order to reconcile your records to the amounts on the form. Please log into the Pirate Portal and navigate to the “Make Payments/ Manage Payments” tab to view account activity and payments made during 2011.

8. I know I didn't pay this much in tuition. Why are the figures on my statement so high?

The 1098-T form reflects total tuition and fee billing amounts, not just items paid by you individually. Therefore, the statement may include amounts paid by financial aid, tuition waivers, exemptions, etc.

9. I know I paid more that what the form shows. Why?

The 1098-T form shows billed amounts for tuition and fees made within the calendar year 2011. . Please log into the Pirate Portal and navigate to the “Make Payments/ Manage Payments” tab to view account activity and payments made during 2011.

10. What are qualified tuition and related expenses?

The College is not required to report amounts to IRS at this time, and includes payments of all tuition and fees on the 1098-T form. The definition of qualified tuition and related expenses varies depending upon which tax credit you are utilizing for eligibility purposes – American Opportunity Tax Credit or Lifetime Learning Credit.

American Opportunity Tax Credit: Qualified tuition and related expenses are tuition and fees a student must pay to be enrolled at or attend an eligible educational institution. The definition for qualified tuition and related expenses, for purposes of the American Opportunity Tax Credit, has been expanded to now include course materials (books, supplies, equipment) whether or not they are purchased from an eligible institution as a condition of enrollment. The following are not qualified tuition and related expenses: (1) amounts paid for any course or other education involving sports, games or hobbies (unless the course or other education is part of the student’s degree program; (2) charges and fees for room, board, student activities, athletics, insurance, books, equipment, transportation (and similar personal, living, or family expenses).

Lifetime Learning Credit: Qualified tuition and related expenses are tuition and fees a student must pay to be enrolled at or attend an eligible educational institution. The following are not qualified tuition and related expenses: (1) amounts paid for any course or other education involving sports, games or hobbies (unless the course or other education is part of the student’s degree program); (2) charges and fees for room, board, student activities, athletics, insurance, books, equipment, transportation (and similar personal, living or family expenses).Note that with either credit, qualified expenses must be reduced by tax-free grants, scholarships, fellowships, tuition exemptions and employer-provided educational assistance. Whether or not you may take advantage of these tax credits depends upon your individual facts and circumstances.

The College cannot provide tax advice, so you may want to consult the IRS or a tax professional to find out more about the credits and your eligibility. Please see the resources below:

IRS Publication 970 - Tax Benefits for Higher Education
IRS Form 8863 to claim education tax credits
U.S. Department of Education