1098-T/Education Tax Credits Information
The information listed below is offered as a guide for students and not intended to provide professional tax advice. If you have questions or need further assistance you might wish to contact the Internal Revenue Service (IRS).
What is a 1098-T?
The Form 1098-T is a statement of adjusted tuition you paid during calendar year 2015. The Form 1098-T is for your use when preparing your taxes for calendar year 2015. The American Opportunity Credit and the Lifetime Learning Credit allow eligible taxpayers to claim a tax credit against their federal income tax for qualified tuition and related expenses.
If you consented to receive your Form 1098-T online, the Form 1098-T will be available by January 22, 2016. The Form 1098-T you print will be the only form you will receive. If you did not consent to receive your Form 1098-T online, the Form 1098-T will be mailed to you by January 31, 2016.
- Is this form a bill?
- No, it is not.
- Why is Los Rios CCD asking for my social security number (SSN) or individual taxpayer identification number (ITIN)?
- The IRS can impose a $100 penalty against the District per information return for missing or incorrect SSN/ITINs. If not provided, or your number does not look accurate, we will contact you and request you submit your number to your Collegeís Admissions and Records Office on Form W-9S, Request for Taxpayer Identification Number. If you do not provide the requested information, the IRS may impose a $50 penalty against you.
- Do I need to provide a SSN/ITIN if I am a non-resident alien (international) student?
- No, you do not need to provide an SSN or ITIN as the District is not required by the IRS to report your tuition information.
- Is this form a source of income I must include on my tax forms?
- No, this form is a statement of the amount of adjusted tuition we have recorded for you in 2015.
- How is the amount determined?
- It will include the amount paid for tuition, less refunds and fee waivers.
- It includes payments received in the reporting year, without regard to the semester the payment applies to. For example, if payment was processed by the District in December 2015 for the Spring semester starting January 2016, the payment would be included on the Form 1098-T for calendar year 2015.
- Who do I contact if I think the information is incorrect?
- It is important to remember that the amount on this form consists of payments processed by the District in calendar year 2015. If a payment you made was processed in December 2015 for the Spring 2016 semester, the payment will be included on the Form 1098-T for 2015 since the payment was processed in 2015.
- The Business Services Office at the college you attended can assist you in determining the correct amount. Call the phone number on the Form 1098-T to be connected to the college you attended.
- Who do I contact if I did not get my form?
- It is important to remember that you will receive the Form 1098-T only if you paid for your tuition during 2015. If you received fee waivers (i.e. BOG waivers) for all of your tuition during 2015, you will not receive a Form 1098-T because you did not pay for your tuition.
- If you paid for your tuition and did not receive the Form 1098-T, please call the Business Services Office of the college you attended.
- Do I need this form to complete my taxes?
- No, this form does not need to be submitted to the IRS when you send in your tax forms.
- Does Los Rios send this information to the IRS?
- Yes, we send the information to the IRS.
- How do I use qualified tuition and related expense information when preparing my tax return?
- Instructions for calculating the credit can be found on IRS Form 8863. You may want to consult the IRS to determine the amount of credit that you may be eligible to claim.
- Is the amount reported for qualified tuition and related expenses the total amount of the tax credit I can claim on my tax return?
- No, not in all situations. The amount of the tax credit that you may claim will depend on your individual situation. You may want to consult the IRS and/or refer to IRS Form 8863 to determine how the American Opportunity Credit and Lifetime Learning Credit affect you.
The American Opportunity Credit may be claimed for qualified tuition and related expenses paid for each student in the taxpayerís family who is enrolled at least half-time in one of the first four years of postsecondary education and who is enrolled in a program leading to a degree, certificate, or other recognized educational credential. The amount that may be claimed as a credit is generally equal to: (1) 100 percent of the first $2,000 of the taxpayerís out-of-pocket expenses paid for each eligible studentís qualified tuition and related expenses, plus (2) 25 percent of the next $2,000 of the taxpayerís out-of-pocket expenses paid for each eligible studentís qualified tuition and related expenses. Thus, 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 IRS eligibility criteria.
For 2015, the amount a taxpayer may claim as the American Opportunity Credit is gradually reduced for taxpayers who have modified adjusted gross income between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). A taxpayer whose modified adjusted gross income is $90,000 or more ($180,000 or more for joint filers) cannot claim the American Opportunity Credit.
If the taxpayer is claiming the Lifetime Learning Credit for a particular student, none of that studentís expenses for that year may be applied toward the American Opportunity Credit.
The Lifetime Learning Credit may be claimed for the qualified tuition and related expenses paid for all students in the taxpayer’s family (i.e., the taxpayer, the taxpayer's spouse, or an eligible dependent) who are enrolled in eligible educational institutions. For 2015, the amount that may be claimed as a credit is equal to 20 percent of the taxpayerís first $10,000 of out-of-pocket qualified tuition and related expenses paid for all the students in the family. Thus, the maximum credit a taxpayer may claim for 2015 is $2,000.
For 2015, the amount a taxpayer may claim as a Lifetime Learning Credit is gradually reduced for taxpayers who have modified adjusted gross income between $52,000 and $62,000 ($104,000 and $124,000 if you file a joint return). Taxpayers with modified adjusted gross income of $62,000 or more ($124,000 or more for a joint return) cannot claim a Lifetime Learning Credit. The definition of modified adjusted gross income is the same as it is for purposes of the American Opportunity Credit.
If the taxpayer is claiming the American Opportunity Credit for a particular student, none of that student’s expenses for that year may be applied toward the Lifetime Learning Credit.