Does anyone know what the IRS Form 1098-T is for?

Question

I know it is something that you use to see if you qualify for some kind of tax credit for college. Should I just take it with me when I go to get my taxes done? Has anyone had any experience with this thing?

Answer 1

1098-T shows how much you paid for tuition for the year noted.

You can use this to claim a Higher Education and Tuiton fees deduction on the 1040 (note that you have to follow special instructions, see IRS.gov as Congress passed an extension late in 2006 and the IRS will not be reprinting the 1040 form). This is limited to $4000 or $2000 depending on how much adjusted gross income you have for the year.

http://www.irs.gov/newsroom/article/0,,id=165779,00.html

You can also use this to claim the Hope credit for your first 2 years of education in college ever. This is limited to a maximum credit of $1,500 ($1000 for the first $1000 spent and $500 for the next $1000 spent).

Thereafter you can claim the Lifetime Learning Credit. This is 20% of amount spent (amount spent limited to $10,000).

Both Hope and Lifetime Learning Credit are limited by adjusted gross income.

You must be taking an educational class. Recreational classes like PE (aka, tennis, volleyball, swimming) do not qualify. Most colleges will not put an amount into the 1098-T for these types of classes.

Please make note that the 1098-T only shows what you paid in for the calendar year. It does not specify if you got a refund for some of the monies the following year. In other words, if you get audited and the auditor decides to question the amount further than looking at the 1098-T, you will need to show that you took the number of units that the money stated on the 1098-T would equate to. Some schools go by full or part time student status so make sure you are good on that front as well.

Answer 2

It is the form that colleges (JUCO and 4 year universities) send to you and the IRS showing how much you paid in qualified tuition for the year.

You can use it to claim the Hope Credit (you're only eligible for this during your 1st two years of college) or the Lifetime Learning Credit (every year after your 1st two years of college).

Answer 3

File Form 1098-E, Student Loan Interest Statement, if you receive student loan interest of $600 or more from an individual during the year in the course of your trade or business.

-shamar

Answer 4

Tuition statement print out from here

http://www.irs.gov/instructions/i1098et/index.html