There are two education tax credits available, the Lifetime Learning Credit and the American Opportunity Tax Credit. Please refer to IRS Publication 970 for details. The credits are based on education expenses paid for you, your spouse, or your dependents. During any particular year you can only claim one of the credits for each student.
To apply for a possible credit, taxpayers must report the amount of payments made during the calendar year for qualified tuition and fees charged as well as the amount of certain scholarships and grants used to pay tuition and fees in the tax year. Schools are required to send this information to taxpayers who have reportable transactions by January 31 in the form of a 1098T Tuition Statement. Taxpayers use this information, along with their own records for qualified tuition and related expenses paid when they fill out IRS form 8863 to claim the tax credit. For a payment to be reportable, it must relate to qualified tuition and related expenses billed during the same calendar year.
A taxpayer should consult a tax professional for further information regarding educational tax credits and deductions. Links to several websites providing additional information are listed below.
John Wood Community College sends the 1098T to students using the mailing address on file prior to the January 31st deadline. Students can also access this information on their JWCC SOLAR account: Click on Student Records, Tax Notification, then select Tax Year.
It is the student’s responsibility to retain receipts for payments made during the tax year as well as refunds the school issued to the student.
Related Links to Taxpayer Resources
IRS Publication 970
IRS Form 8863 Education Credits
Instructions for IRS Form 8863
Commonly Asked Questions
- What is the tax reporting year?
- The tax year is defined as January 1st through December 31st.
- Why are the charges listed in a different year than the payment I made?
- Charges are posted at the time of registration. Charges may be posted in one tax year and payments made in the following tax year.
- What is required to be reported in Box 1?
- IRS requires schools to report the following: The amount of payments received for qualified tuition and related expenses (QTRE) during the year from all sources. The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year that relate to the payments received for qualified tuition and related expenses during the same calendar year, but cannot exceed QTRE posted during the calendar year. The amount reported in Box 1 is not reduced by scholarships and grants reported in Box 5.
- What do I do if Box 4 or 6 are filled in?
- For tax year 2018 Box 4 will be left blank as required by IRS since John Wood Community College changed reporting method in 2018. Box 6 is completed if a 1098T was sent for a previous tax year and a reduction in scholarships/grants was recorded in the current tax year. You may need to amend a previous year tax return if you claimed a tax credit for the previous year.
- Why didn’t I get a 1098T in the mail?
There are several reasons a student would not receive a 1098T for a specific tax year. They include but are not limited to the following:
- Student was not enrolled in eligible courses.
- Tuition charges for enrollment and withdrawals for the year net to a zero dollar amount.
- Scholarships and grants disbursed to a student account were greater than the tuition charges posted during the tax year.
- Student moved and did not provide the school with a current address.
Although we may not have been required to generate a 1098T Tuition Statement for a student, students can view the information on their JWCC SOLAR account.
- How can I get another copy of my 1098T?
- Students who need a copy of their 1098T statement can stop by the business office to request one or call to have a copy mailed to the current address on file with Enrollment Services. To protect the student’s privacy, we will not mail or fax a copy of the 1098T to anyone except the student, nor will we allow anyone except the student to pick up a copy of the form at the business office. A valid photo ID will be required.