What is the 1098T Tuition Statement?
The 1098T Tuition Statement is issued to students who enrolled in credit classes
at JWCC between January 1, 2004 and December 31, 2004 for any academic term
beginning in 2004 or in the first 3 months of 2005.
The IRS allows institutions to report either total payments received for
qualified tuition and related expenses in Box 1, OR total amount billed for
qualified tuition and related expenses during the calendar year in Box 2.
John
Wood Community College has elected to report total amount billed for qualified
tuition and related expenses during the calendar year in Box 2.
Box 2-Amounts billed for qualified tuition and related expenses less any related
reductions in charges.
Box 3-Adjustments Made for a Prior Year - the
amount of reductions in charges made for qualified tuition and related expenses
made during the calendar year that relate to amounts billed that were reported
for a prior year.
Box 4-Scholarships or Grants - the amount of all scholarships and grants
administered and processed by JWCC during the calendar year. This also includes
amounts we billed governmental agencies and employers on your behalf for
qualifying tuition and related expenses.
**The amount of any scholarships or grants reported for the calendar year and
other similar amounts not reported because they were not administered and
processed by JWCC, may reduce the amount of any allowable education tax credit
for the taxable year.
Box 5-Adjustments to scholarships or grants for a
prior year---the amount of any reduction to the amount of scholarships or grants
that were reported for a prior year.
PLEASE NOTE:
The amount of any reimbursements or refunds of payments received or
reductions in charges for qualified tuition and related expenses, or any
reductions to the amount of scholarships or grants reported by JWCC with respect
to the individual for a prior calendar year may affect the amount of any
allowable education tax credit for the prior calendar year and may result in an
increase in tax liability for the year of the refund.
Taxpayers should refer to relevant IRS forms and publications, specifically
PUB 970, Tax Benefits for Education, and Form 8863 Education Credits. Access
these on the IRS website:www.irs.gov.
PLEASE DO NOT REFER TO JOHN WOOD COMMUNITY COLLEGE for explanations relating
to the eligibility requirements for, and calculation of, any allowable education
tax credit.
Brenda Manis, Manager of Student Accounts
John Wood Community College
1301 South 48th Street
Quincy, IL 62305
217-641-4202
JWCC students can view and print their 2004 1098T Statement on their JWCC
Student Solar Account! Log in, then select "SOLAR," "Student Records," and
"Tax Notification."
With the enactment of the Balanced Budget Act of 1997 and the Taxpayer Relief
Act of 1997, several new tax benefits became available to students and their
families. These tax credits will ease the individual income tax burden of some
families. Following is information on two educational tax credits.
HOPE CREDIT
The maximum amount of Hope Credit you can claim in 2004 is $1,500 for qualified
educational expenses paid for each eligible student.
Eligibility requirements for the Hope Credit are as follows:
The student must be enrolled at least half-time in a program leading to a
degree or certificate for at least one academic period beginning in 2004.
The student must be enrolled in one of their first two (2) years of post- secondary education at an eligible institution.
The student must be free of any federal or state felony conviction for
possessing or distributing a controlled substance as of the end of 2004.
The credit is only allowed for two (2) taxable years per student.
The HOPE CREDIT covers qualified costs, which includes tuition and fees, but
specifically excludes books, health insurance, room and board, and expenses
involving sports, games, or hobbies unless part of the student’s degree program.
The credit is gradually phased out for the taxpayer who has modified adjusted
gross income between $42,000 and $52,000 ($85,000 to $105,000 for married
taxpayers filing jointly).
Only out of pocket expenses are eligible. Qualifying charges must be reduced
by tax-free scholarships, grants and employer provided assistance.
Both the HOPE CREDIT and the LIFETIME LEARNING CREDIT cannot be claimed for the
same student in a single tax year. However, a taxpayer may use the HOPE CREDIT
for certain family members and LIFETIME LEARNING CREDIT for other family members
during the same tax year.
The credit is NOT available if filing status is “married filing separately, or
you are listed as a dependent in the Exemptions section on another person’s tax
return.
The credit is NOT available if eligible tuition expenses were paid with
tax-free scholarships, grants, or employer-provided educational assistance.
LIFETIME LEARNING CREDIT
The LIFETIME LEARNING CREDIT is a tax credit available to students who are
enrolled in an eligible educational institution pursuing lifelong learning in
courses to acquire or improve job skills. This credit is an amount equal to 20%
of the first $10,000 of out-of-pocket qualified tuition and related expenses.
The maximum allowable credit to be claimed in a taxable year is $2,000.
Eligibility requirements are as follows:
The student must be enrolled in an eligible post-secondary educational
institution; however, the LIFETIME LEARNING CREDIT does not have enrollment
status requirements like the HOPE CREDIT.
This tax credit is applicable to those enrolled in undergraduate, graduate
education, or education geared to improve or acquire job skills. The LIFETIME
LEARNING TAX CREDIT may be claimed for an unlimited number of years, as long as
the individual meets the income limits and takes classes at an eligible
institution.
The credit may be used for part-time study, unlike the Hope tax credit
requirements, which stipulate a half-time enrollment status.
The LIFETIME LEARNING CREDIT may be claimed for the taxpayer, the taxpayer’s
spouse, or an eligible dependent. This credit does not vary according to the
number of students in a household.
The LIFETIME LEARNING CREDIT covers qualified costs, which includes tuition
and fees, but specifically excludes books, health insurance, room and board, and
expenses involving sports, games, or hobbies unless part of the student’s degree
program.
The credit is gradually phased out for taxpayers who have modified adjusted
gross income between $42,000 and $52,000 ($85,000 to $105,000 for married
taxpayers filing jointly.)
Only out of pocket expenses are eligible. Qualifying charges must be reduced
by tax-free scholarships, grants and employer provided assistance. Both the HOPE
CREDIT and the LIFETIME LEARNING CREDIT cannot be claimed for the same student
in a single tax year. However, a taxpayer may use the HOPE CREDIT for certain
family members and LIFETIME LEARNING CREDIT for other family members during the
same tax year.
The credit is NOT available if filing status is “married filing separately”.
You cannot claim this credit if you are listed as a dependent on another
person’s tax return.
