American Opportunity Tax Credit
The American Opportunity Tax Credit, which expanded and renamed the already existing Hope credit, can be claimed for tuition and certain fees paid for higher education in 2009 and 2010.
- The tax credit has increased to $2,500 a year to cover higher education expenses.
- The cost of books and other course materials may be added to tuition and fees to determine your eligible expenses.
- The credit can now be claimed for the first four years of post-secondary education. Previously the credit could be claimed for only the first two years of postsecondary education.
- This means a potential difference of over $6,000 more returned to you.
- The income limits for eligibility are now much higher.
For more information, please visit the IRS web site at:
Form 1098-T is an informational return that educational institutions are required to issue to each student that is enrolled and for whom a reportable transaction is made. The 1098-T form provides tax information to both the taxpayer and the IRS which may be useful in determining eligibility for tax credits and/or deductions. Either the student or the person that claims the student as a dependent may be eligible for tax credits and/or deductions on his/her individual income tax return for qualified tuition and related expenses.
Please note that the 1098-T may not provide all of the information you need to determine eligibility and you will also need your personal financial records. Eligibility for any tax benefit depends upon your individual facts and circumstances. The University cannot provide tax advice. Please consult the IRS or a tax professional to find out more about education credits and deductions and your eligibility. You may also refer to the resource links below for additional information.
1098-T forms are available on UTB Online. To view or print your 1098-T form, log in to UTB Online, access the Students Menu, then click on View My 1098-T Forms under the Financial Information subsection.
For more information, check the Frequently Asked Questions page or visit the IRS web site at: www.irs.gov