We are pleased to provide you some general information about tax credits that may apply to you. We encourage you to read through this information and visit the Internal Revenue Service for more specific information. Additional information regarding 1098-T audits can be found within this document.
- Drew University Tax Credit Information
- The HOPE Scholarship Tax Credit
- The Lifetime Learning Tax Credit
- Non-Drew Tax Information
- Contacting Drew
Drew University Tax Credit Information
Drew University’s Business Office will be preparing 1098-T tax forms electronically every year in January. You will be notified via email when your electronic 1098-T is available for viewing on TreeHouse. For more information on electronic consent, please visit our 1098-T Electronic Consent page. Please note that Drew acknowledges and closely follows the Family Educational Rights and Privacy Act (FERPA).
On the 1098T form, Drew University reported the total amount billed for qualified tuition and related expenses in box 2.
In box 4 we reported the amount of any scholarships or grants reported for the calendar year. The amount of any scholarships or grants and other similar amounts not reported may reduce the amount of any allowable education tax credit.
If there were any reductions in charges or any reductions to the amount of scholarships or grants, there will be an amount in box 3 or box 5, respectively. These amounts may reduce any allowable education credit you may claim or the prior year.
For more information about the deduction or credit, please refer to Publication 970 (PDF), Tax Benefits for Education and Form 8863 (PDF), Education Credits.
- The HOPE Scholarship Tax Credit: The idea behind the HOPE Scholarship tax credit is to make the first two years of college more available to more students.
- The Lifetime Learning Tax Credit: This tax credit is aimed at college juniors and seniors, graduate and professional students, adults who want to go back to school to upgrade their skills or take a few courses.
The HOPE Scholarship Tax Credit
The idea behind the HOPE Scholarship tax credit is to make the first two years of college more available to more students. During the first two years of college, students are eligible to receive a tax credit of 100% on the first $1,000 of tuition and required fees and 50% of the second $1,000. The credit does not apply to room and board costs or “non-educational fees.” The credit can be applied to payments which were made after December 31, 1997 for college enrollment beginning after that same date.
- Example 1: A high school senior going into their first year of college in September 1999, for example, could be eligible for up to $1,500 in credit.
- Example 2: A married couple with an adjusted gross income of $60,000 and two children in college at least half time, one at a community college with a tuition of $2,000 and the other a sophomore at a private college with $11,000 tuition, would have their taxes cut by as much as $3,000.
Related links (non-Drew)
- IRS.gov: Notice 97-60 Hope Scholarship Credit: The official word on the Hope Scholarship Credit from the Internal Revenue Service’s Web site.
The Lifetime Learning Tax Credit
This tax credit is aimed at college juniors and seniors, graduate and professional students, adults who want to go back to school to upgrade their skills or to take a few courses.
Under this program, a family is eligible for a 20% tax credit for the first $5,000 of tuition and required fees paid through 2003, and for the first $10,000 after. Just like the HOPE Scholarship credit, the Lifetime Learning credit does not apply to non-educational fees, including room and board costs. It is applicable toward amounts paid after July 1, 1999 for post-secondary enrollment beginning on or after the same date.
- Example: A homemaker, whose family has an adjusted gross income of $70,000, wants to attend a graduate teacher training program at a public university with a tuition of $3,500. Her family’s income tax would be cut by up to $700.
This credit is available throughout their lifetime on a per taxpayer (family) basis, and is phased out at the same income levels as those listed for the HOPE Scholarship.
Families will be able to claim both the Lifetime Learning tax credit for some members of their family and the HOPE Scholarship tax credit for others who qualify.
Related links (non-Drew)
- IRS.gov: Notice 97-60 Lifetime Learning Credit: The official word on the Lifetime Learning Credit from the Internal Revenue Service’s Web site.
Non-Drew Tax Information
- Tax Incentives for Higher Education Expenses
- Tax Information for Students
- Frequently Asked Questions
- Publication 970: Tax Benefits for Higher Education (PDF)
- Form 8863: Education Credits (Hope and Lifetime Learning Credits) (PDF)
- Contacting the IRS
Questions about how these credits affect those attending Drew University can be directed to:
- Phone: 973/408-3811
- E-mail: firstname.lastname@example.org