Federal Income Tax laws were amended for the 1998 year to allow a percentage of tuition payments to be used as credits against income taxes owed by students or whoever claims them as a dependent. These credits are known as the American Opportunity and Lifetime Learning Tax Credits.
The 1098-T provides part of the information needed to claim education tax benefits provided by the American Opportunity Credit and Lifetime Learning Tax Credits. Form 1098-T should be used along with the taxpayer’s own records of tuition and fee amounts paid to complete IRS Form 8863 to claim the tax credit.
This information is being provided as required by the IRS and does not represent tax advice from the Pennsylvania College of Technology. The taxpayer should refer to relevant IRS forms and publications or to their tax adviser and should not contact the College for explanations relating to eligibility requirements or calculations of any allowable education tax credit.
Pennsylvania College of Technology mails 1098-T forms annually by January 31 as required by federal regulations. An online version of your 1098-T is available in the "Financial Information" section of SIS. The IRS requires that the College must report either Amounts Billed or Amounts Paid for qualified educational expense within the tax year on the form. The College has chosen to report the Amounts Billed (Box 2). The amount reported in Box 2 may represent an amount other than the amount actually paid by the student.
Due to academic years not corresponding to tax years, information on your 1098-T may be very confusing.
The College is referring students to the“Financial Information” section of SIS to obtain the record of their actual payments received by the College. Students may also obtain a statement of their account by submitting a written request to the Bursar's Office/Student Accounts located in the Student & Administrative Services Center (SASC), room 2098.
Taxpayers should use this information, along with the IRS “Instructions to Students” (see back of 1098-T form), advice from their tax preparer, and IRS publications, to help complete their tax returns.
IRS Publication 970, Tax Benefits for Higher Education, available on the IRS website, contains information to assist you in determining your eligibility for either of these credits.