In 1997, the Taxpayer Relief Act established two education tax credits and a deduction for student loan interest. These credits are explained in detail in Publication 970 from the IRS. Eligible educational institutions such as colleges or universities are subject to the IRS reporting requirements of Form 1098T Tuition Statement. Therefore, we must report for each student enrolled for whom a reportable transaction is made during the pertaining calendar year. Eligible institutions may choose to report payments received or amounts billed for qualified tuition and related expenses. GCC reports qualified tuition and related expenses (Box 2).
When filing a federal tax return, you (the student), or a person who can claim you as a dependent, may be eligible for an education tax credit for qualified tuition, fees, and related expenses that were actually paid out of pocket during the pertaining calendar year. The 1098T form provides information that will assist in determining eligibility for a tax credit when preparing a federal tax return. Receiving the 1098T form does not mean you necessarily qualify for a tax credit. If you have questions about how to calculate your education tax credit, you should consult your tax professional or refer to the IRS (www.irs.gov). GCC cannot offer advice on tax matters.
Posted in: 1098t