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1098-T and the Hope Education Credit

Form 1098-T is an information return used by educational institutions to report student information to the IRS. The form has information about the student including the student’s name, taxpayer identification number, address, academic status, and enrollment. The form also includes information about qualified educational expenses such as tuition and related expenses, and information on scholarships and grants that the student has received.

Every student that meets the reporting requirements for Form 1098-T must have an information return filed for them by their educational institution. A student can request a copy of their 1098-T from their institution and use the information to help them claim tax credits. The 1098-T information return does not have all of the information that is required to claim the credit, but it offers some of the required information.

Claiming the tax credit is not required by students. Students similarly are not required to file Form 1098-T but they may request a copy to help them apply for tax credits or have the information for their own financial records. The Hope Education Credit, American Opportunity Credit (an extension of the Hope Credit), and Lifetime Learning Credit are three educated related tax credits that students may qualify for.

Essentially, the credit is mostly to relieve the tax burden on parents and students who are not dependents of others who are paying for their own education. There are several requirements for the credit for both taxpayers and the student whose qualified expenses that the credit is being claimed for. Students may also claim the credit for their own taxes if they are not dependents of others.

Students can qualify for the Hope Education Credit if the meet certain requirements. The Hope Credit offers up to a $1650 tax credit for qualified students. The credit is claimed for expenses paid for by the taxpayer, the taxpayer’s spouse, or a dependent of the taxpayer.

The American Opportunity Credit extends the Hope Credit for up to $2,500 as a credit instead of $1650. The student for whom the credit is claimed can be enrolled up to 4 years instead of 2. Also, up to 40% of the credit is refundable. The American Opportunity Credit is available since the year 2009.

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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

  1. Breana Steele
    March 23rd, 2011 at 19:17 | #1

    So… If I am a 19 year old student filing my taxes on my own (and not as a dependent of my mother), I can claim this 1098-T, correct? Someone had told me that (even if you file your own taxes, independently of your parents) that you can’t file this form until you’re over 24 years of age.

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  2. March 23rd, 2011 at 21:44 | #2

    If you are filing your own taxes, you can claim a 1098-T. I have never heard of an age restriction for this form.

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