Financial Services
Educational Tax Credits
Students or their parents may qualify for the Hope Scholarship Credit or the Lifetime Leaning tax credits as provided by the Taxpayer Relief Act of 1997. UNCG issues 1098T forms for all students who have qualifying educational expenses if the student provides a social security number to the University. Since our students have assigned ID's, the University may not have the social security number. If you wish to have a 1098T issued and the student has an assigned ID, the Cashier's and Student Accounts Office should be contacted to ensure that the social security number information is on file. If it is not yet on file, the student will need to complete a form W-9S and submit it to the Cashier's office. This form is also available in the Cashier's Office.What is the Hope Scholarship Credit?
Beginning in 2008, undergraduate students in their first two years of higher education who are enrolled at least half-time may be eligible for an income tax credit of up to $1,800 for tuition and fees paid for the first two years of post-secondary education. If you may be claimed as a dependent, the person providing your financial support may be eligible to claim the credit.
Under the American Recovery and Reinvestment Act (ARRA), more parents and students will qualify over the next two years for a tax credit, the American Opportunity Credit, to pay for college expenses.
The American Opportunity Credit is not available on the 2008 returns taxpayers
are filing during 2009. The new credit modifies the existing Hope Credit for
tax years 2009 and 2010, making the Hope Credit available to a broader range
of taxpayers, including many with higher incomes and those who owe no tax.
It also adds required course materials to the list of qualifying expenses and
allows the credit to be claimed for four
post-secondary education years instead
of two. Many of those eligible will qualify for the maximum annual credit
of $2,500 per student.
The full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels. These income limits are higher than under the existing Hope and Lifetime Learning Credits.
What is the Lifetime Learning Credit?
Beginning in 2008, all full or part-time students, including continuing education and graduate students, not claiming the Hope Scholarship credit for the tax year may be eligible for an income tax credit of up to twenty percent of the first $10,000 of tuition and fees paid. If the student may be claimed as a dependent, the person providing the student's support may claim the credit. To determine whether you, or the person who may claim you as a dependent, are eligible to claim either the Hope Scholarship Credit or the Lifetime Learning Credit, please contact a tax professional or refer to IRS Publication 970 (Tax Benefits for Higher Education). Also, you may contact the IRS through their taxpayer assistance number at (800) 829-1040 or the IRS website.
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