Education Tax Credits

Recent Developments

New IRS Publication on Education Tax Benefits. The IRS has issued Publication 970,Tax Benefits for Education to assist taxpayers seeking to claim federal education tax benefits on their 2007 tax returns.

Resources for Colleges and Universities

• General Instructions for Forms 1099, 1098, 5498, and W-26.  Guidance Related to Filing, Deadlines, and Furnishing Statements to Students.
• IRS Notice 2006-72, Guidance Responding to Frequently Asked Questions about 1098-T Reporting (September, 2006)
• IRS Revenue Procedure 2005-50 Sets Forth Rules for Changing 1098-T Reporting Methods (August, 2005) 
• IRS Issues Guidance on Obtaining E-Filing Waivers (November, 2005)  
• Final Rules on Education Tax Credits The final regulations for 1098-T reporting (December 2002)
• NACUBO Webcast on 1098-T Reporting.  This program, originally broadcast in May 2003, is available on demand, free of charge.  Presenters John Harabedian from Rutgers University and Barbara Warren from Johns Hopkins university walk through the reporting requirements and answer audience questions. 
• Process Guide to 1098-T Reporting, Third Edition  eBook.  NACUBO's bestselling guidebook, which incorporates changes brought about by the final regulations issued in December 2002, provides a detailed explanation of the reporting requirements as well as a list of references relating to the Hope and Lifetime Learning tax credits, a process for complying with the reporting requirements, answers to frequently asked questions, and sample documents that you can modify for your institution's use. 

Forms and Filing Instructions

• IRS Revenue Procedure 2005-50, IRS Guidance on Obtaining Consent for Change in 1098-T Reporting Method
• Form 8863, Education Credits (PDF)
• Form 1098-T, Tuition Payments Statement (PDF)
• Form 1098-T and 1098-E Instructions, Tuition Payments Statement and Interest Payment Instructions (PDF)
• Form W-9S, Request for Student’s or Borrower’s Social Security Number and Certification (PDF)

Resources For Students

Students and families interested in finding out more about the new Hope and Lifetime Learning tax credits, and other education-related tax provisions of the Taxpayer Relief Act of 1997 may find the following consumer information pieces useful.

• Publication 970, Tax Benefits for Education (2007).  For an explanation of all the federal tax benefits that help pay for college.
  For use in preparing student/family tax returns (Form 1040). 
• IRS Form 8863, Education Credits (PDF)This is the form you need to file with your 1040. Instructions are included.
• Final Rules on Education Tax Credits (December 26, 2002) These are the regulations that spell out eligibility rules, definitions, and mechanics of claiming the Hope and Lifetime Learning credits
  

If you have additional questions about your eligibility for the new education tax credits, you can call the IRS at 800-829-1040 or consult your tax advisor. Colleges and universities are generally not able to provide students and families with tax advice.

Archives

• NACUBO Publishes 1098-T Reporting Survey Results (August 17, 2004)  
• NACUBO Comments to IRS on 1098-T Reporting Requirements (July 29, 2002)