Tax Credits for Higher Education
Trinity University/Student Financial Services
One Trinity Place
San Antonio, TX 78212-7200
(210) 999-8316 (fax)
Saving money on college costs with tax credits for higher education You could be< eligible for a tax credit and/or the Higher Education Tuition and Fees Deduction for qualified tuition and related expense you have paid under one of these three tax benefits designed to help students or their parents finance their post-secondary education:
- Lifetime Learning Tax Credit, available to students who take one or more classes from a college or university to pursue an undergraduate or graduate degree, certificate, other recognized credential, or to acquire or improve job skills;
- Hope Scholarship Tax Credit (“Hope”), available to students who are enrolled in one of the first two years of post-secondary education and are carrying at least a half-time workload while pursuing an undergraduate degree, certificate, or other recognized credential; and
- Higher Education Tuition and Fees Deduction, available to tax filers whose modified Adjusted Gross Income (AGI) is too high to qualify for the Hope and Lifetime Learning Tax Credits.
The above information may or may not reflect recent revisions in IRS regulations. The IRS web site at www.irs.gov contains more information. Please check with your tax preparer/advisor to ensure that you have the most recent information available.
Consent for the electronic delivery of 1098-T's and more information is available on TigerPAWS student web site at https://tigerpaws.trinity.edu.
This information relating to potential educational credits is being provided to you for use in preparing your tax return for 2014. You can obtain or order IRS Publication 970, Tax Benefits for Higher Education and copies of IRS Form 8863, Education Credits (Hope and Lifetime Learning Credit), from an IRS Office near you or download information at www.irs.gov. Due to the complex nature of these tax regulations, we strongly recommend that you contact a tax advisor regarding these tax provisions.
Note: The 2014 1098-T is only available for students whose tuition and fee charges exceed their scholarship(s) and grant(s).
The 1098-T form reflects transactions posted to your Trinity University student account for calendar year 2014 (January 1, 2014 through December 31, 2014), which may be relevant to your tax return. This is not a complete summary of all transactions posted to your account since not all transactions are relevant to the tax credit.
Box 2: Amounts billed for qualified tuition and related expenses
Box 2 on the 1098-T shows the total amount billed for qualified tuition and related expenses less any related reductions in charges. Typically, qualified tuition and related expenses must be required by and paid to the institution for enrollment purposes. They include tuition and mandatory fees such as the activity fee and course related fees (i.e. geology fee, art studio fee, etc.). They do not include books, room and board, insurance, equipment, transportation or other similar personal living expenses.
This box may include tuition, fees and related expenses for the following academic terms: Spring 2014, Summer 2014, Fall 2014 and Spring 2015. The calendar IRS reporting year for 1098-T purposes does not coincide with the Trinity academic year. Consequently, tuition and related fees reported in box 2 of the 1098-T may not coincide with those shown on semester statements that you previously received. One reason is that Trinity bills for the Spring term in December each year; therefore, your calendar year 2014 1098-T form will normally exclude Spring 2014 charges (if applicable), but include Spring 2015 (if applicable). Box 7 of the 1098-T will be checked if Spring 2015 charges have been included.
Box 5: Scholarships or Grants
Box 5 on the 1098-T shows the total of all scholarships or grants administered and processed by Trinity University. The amount of scholarships or grants for the calendar year (including those not reported by Trinity) may reduce the amount of any allowable tuition and fees deduction or the education credit you may claim for the year.
Like Box 2, Box 5 may include scholarships and grants posted to the student's account for the following terms: Spring 2014, Summer 2014, Fall 2014, and Spring 2015. The calendar IRS reporting year for 1098-T purposes does not coincide with the Trinity academic year. Consequently, scholarship and grant amounts reported in Box 5 of the 1098-T may not coincide with semester statements that you previously received.
Because federal and state regulations dictate the timing of some financial aid disbursal, your 1098-T will typically include scholarships and grants for Spring 2014 (if applicable), but may exclude financial aid for Spring 2015 (if applicable) depending on when these funds are received. Thus, our reporting of information on the 1098-T differs for tuition and fees versus scholarships and grants due to timing differences in recognizing transactions on our system. Note: This is typical for many private institutions.
Other Information and Contacts:
In addition, there may be other relevant transactions that are not reflected on your Trinity University student account; therefore, they will not be reflected on this 1098-T. For example, if you received a non-taxable third-party scholarship or grant, and deposited those funds directly into your bank account, the transaction is not reflected on the 1098-T. Nevertheless, you will need to consider such transactions in your calculations.
The 1098-T should be used only as a starting point in your research to determine if you are eligible for tax credit or tax deductions. Your personal financial records serve as the supporting documentation for your federal income tax return. You can access all your account history online for the calendar year at payonline.trinity.edu.
This document is not intended as tax advice, but merely to provide information to assist you in preparing your tax return.
While Trinity Student Accounts staff will not be able to answer specific tax questions, we are available to answer questions you may have regarding transactions between you and Trinity University during the reporting period. Contact us at (210) 999-8036. We hope this information is helpful to you.