1098-T Tax Form Frequently Asked Questions

NOTE: It is up to each taxpayer to determine eligibility for the credits and how to calculate them. Texas Tech cannot advise you on how to claim the credit.

What is a 1098-T?
The 1098-T is an informational tax form letting you know what information has been sent to the IRS. A 1098-T is sent to each student who was billed tuition during the previous calendar year. It provides information related to the Hope Tax Credit or the Lifetime Learning Credit. Texas Tech is required by the IRS to issue 1098-Ts. 

When will I receive the form from the school?
The 1098-T forms are sent to the students' address on file in January.

I received a 1098-T from Texas Tech; does that mean I am eligible for the credit?
Receipt of a 1098-T does not mean that you are eligible for the credit. There are many restrictions associated with the tax credits. Review IRS forms, instructions, and publications for guidance.

What are these credits? 
The credits are explained in IRS Publication 970 on Tax Benefits for Higher Education, which can be seen at www.irs.gov/publications/p970/index.html

Overview of the Tax Credits
In August 1997, the Taxpayer Relief Act of 1997 (TRA97) was signed into law. This law established the Hope and Lifetime Learning tax credits. TRA97 created two education tax credits for students and families:

The American Opportunity Tax Credit provides up to $2,500 per student for qualified tuition and related expenses for the first two years of post-secondary education. To be eligible, students must be enrolled at least half-time in a degree or certificate-granting program.

The Lifetime Learning Tax Credit is more broadly applicable to post secondary education and provides a credit up to $2000.

NOTE: Texas Tech cannot provide tax advice. It is up to each taxpayer to determine eligibility for the credits and how to calculate them. Please advise a tax professional on how to claim the credit.