Student Fees:

Cashier's Office: (775) 784-6915

 

Education Tax Credits - Form 1098-T / Form 1098-E


Education Tax Credits | Student Fees | Student Loan Interest Deductions | Further Information about Education Tax Credits | Questions About Fees

The following information was prepared to inform students about the tax credits and student loan interest provisions contained in the Taxpayer Relief Act of 1997. It is based upon our understanding of the provisions contained in the law and should not be considered an official document. This information is not intended to represent tax or legal advice from the University of Nevada, Reno. Individuals should rely upon the advice of a tax practitioner or the Internal Revenue Service to make informed decisions about personal income tax situations.

In 1997 Congress passed the Taxpayer Relief Act of 1997, which provides many tax benefits for individuals paying higher education costs for themselves or members of their family.

 

EDUCATION TAX CREDITS


The Hope Scholarship Credit

The Hope Scholarship Credit is not a scholarship, but a tax credit equal to 100% of the 1st $1,000 of a student's qualified educational expenses plus 50% of the next $1,000. The maximum credit is $1,500 per student in each of the first two years of a post-secondary degree program. The maximum credit will increase for inflation after 2001. Students must be enrolled at least halftime during at least one academic period that begins during a tax year and cannot have had a drug felony conviction. Education expenses paid on or after January 1, 1998 are eligible for the Hope Scholarship Credit.

The Lifetime Learning Credit

The Lifetime Learning Credit applies to qualified tuition and fees for undergraduate, graduate, and continuing education course work at an eligible education institution. A taxpayer can claim a credit equal to 20% of $5,000 of qualified educational expenses paid for the taxpayer, his or her spouse, or dependent children. The maximum credit is $1,000 per family per year. Starting in 2003, the amount of eligible education expenses increases to $10,000, resulting in a $2,000 maximum tax credit. Education expenses paid on or after July 1, 1998 are eligible for the Lifetime Learning Credit.

Limitations Related to Both Tax Credits

The Hope and Lifetime Learning Credits cannot both be claimed for the same student in the same tax year. The taxpayer may claim both credits on one tax return (for different students) but must choose which credit to claim for each individual. These credits may not be combined with tax-free withdrawals from a Coverdell ESA where tax free treatment was not waived.

 

STUDENT FEES

Information Reporting

The IRS requires that the University of Nevada, Reno send an informational statement, Form 1098-T, Tuition Payments Statement, by January 31st to assist the student and the IRS in determining if the student qualifies for the Hope Scholarship Credit. The University is required to indicate whether the student was enrolled at least halftime for one semester during the calendar year. The IRS also requires the University to indicate if the student was enrolled exclusively in graduate level courses. This indicator would disqualify the student from claiming the Hope Scholarship Credit.

You may obtain copies of your Form 1098-T from the University of Nevada, Reno web registration site at http://www.unr.edu/epaws

 

STUDENT LOAN INTEREST DEDUCTIONS

You may be able to deduct interest paid on a qualified student loan during the first 60 months that interest payments are required. Periods of loan deferrals or forbearance do not count against the 60 month period. The maximum deduction each taxpayer is permitted to take increases from $1,000 in 1998 to $2,500 in 2001 and thereafter. No student loan interest deduction is allowed for interest payments due or paid before 1998. The amount eligible for the deduction is limited to post-secondary expenses for tuition, fees, books, equipment, room and board, and is an above-the-line deduction (the taxpayer does not need to itemize in order to claim the deduction).

The full value of student loan interest deduction is available to married taxpayers filing jointly with an adjusted gross income (AGI) of $60,000 or less and to single taxpayers with an AGI of $40,000 or less. The tax credits phase out gradually. Once married taxpayers' AGI exceeds $75,000 or single taxpayers' AGI exceeds $55,000 they are not eligible for the deduction. The income limits will be adjusted for inflation after 2002.

Information Reporting

The University will provide IRS Form 1098-E (Student Loan Interest Statement) by January 31st, for student loan interest paid to the University for Perkins, Health Profession, and Nursing loans during the prior tax year.

 

FURTHER INFORMATION ABOUT EDUCATION TAX CREDITS


QUESTIONS ABOUT FEES

The University will send students a statement summarizing fees and payments to the university for the calendar year with Form 1098-T. If you have questions regarding the statement of fees and payments, please contact the Cashier’s Office at 784-6915.