Please consult with your tax preparer on how to take advantage of the following education tax credits and deduction opportunities. Information on this page is not tax advice and intended only to inform students and families of possible educational tax credits.
- Student Loan Interest Deduction — certain borrowers can take a tax deduction for the interest actually paid on student loans. This benefit applies to all loans used to pay for a postsecondary education school expenses.
- The American Opportunity Credit (AOC) is a new credit that modifies the existing Hope Credit for tax years 2009 and 2010, making the 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 (4) postsecondary education years instead of two (2).
- The Lifetime Learning Tax Credit is for those students who are beyond their second year of college or taking classes part time to improve or upgrade their job skills. It is for virtually any postsecondary education and training.
A taxpayer can not claim both the American Opportunity Credit and the Lifetime Learning Credit for the same student during the same year. To determine if you can claim the AOC or Lifetime Learning Tax Credit, you must download Form 1098-T from your HACCWeb account. This form is not mailed.
The 1098-T form is informational only. While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax credit. There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.
To print your 1098-T go online to HACCWeb > Student Services & Financial Aid > click on the Student Services folder > click on Tax Notification-1098 Information.
For more information go to www.irs.gov or contact the IRS at 1-800-829-1040.