1098-T Statement & Tax Credits
The Taxpayer Relief Act of 1997 allows a tax credit to be claimed for out-of-pocket payments made to Marist College during 2012 for tuition and certain fees. The IRS requires that we provide a 1098-T statement to you for your use in completing ITD Form 8863.
The 1098-T statement will include all charges billed during the 2012 tax year, depending on the date of billing. Marist College has elected to provide charges billed versus payment as outlined by the Federal Government. Therefore, 2012 January/Spring term charges may not be included, due to billing date. However, 2013 January/Spring term charges may be included, if billed prior to December 31, 2012.
We recommend that you refer to that information to assist you in determining the amount of credit which may be claimed on your behalf. This information should not be misinterpreted as tax advice. The amounts and calculations used to determine the credit are the decision of the taxpayer after consideration of relevant IRS regulations, Form 8863, and, perhaps, the advice of a tax consultant.
| A detailed listing of qualified charges, payments, and scholarships is available via your myMarist account. Please log on to myMarist, click the Student tab and then click "Self Service Banner (SSB)." Once you are on Self Service banner, please click the tab for "Student Financial Services" and then you will see the link for "Tax Information." Please use 2012 for the applicable year. |
Education Credits
(American Opportunity and Lifetime Learning Credits)
Comparison of Education Credits:
Caution. If you have more than one student eligible for the American Opportunity Credit or the Hope Credit, you must claim the same credit for all eligible students. You cannot claim both the American Opportunity Credit and the Hope Credit on the same tax return. However, you can claim both the American Opportunity Credit and the Lifetime Learning Credit, or the Hope Credit and the Lifetime Learning Credit on the same return-but not for the same student
| American Opportunity Credit |
Lifetime Learning Credit | ||
| Maximum credit | Up to $2,500 credit per eligible student | Up to $2,000 ($4,000 if a student in a Midwestern disaster area) credit per return | |
| Limit on modified adjusted gross income (MAGI) | $180,000 if married filling jointly; $90,000 if single, head of household, or qualifying widow(er) |
$120,000 if married filling jointly; $60,000 if single, head of household, or qualifying widow(er) |
|
| Refundable or nonrefundable | 40% of credit may be refundable; the rest is nonrefundable | Credit limited to the amount of tax you must pay on your taxable income | |
| Number of years of postsecondary education | Available ONLY for the first 4 years of postsecondary education | Available for all years of postsecondary education and for courses to acquire or improve job skills | |
| Number of tax years credit available | Available ONLY for 4 tax years per eligible student | Available for an unlimited number of years | |
| Type of degree required | Student must be pursuing an undergraduate degree or other recognized education credential | Student does not need to be pursuing a degree or other recognized education credential | |
| Number of courses | Student must be enrolled at least half time for at least one academic period beginning during the tax year | Available for one or more courses | |
| Felony drug conviction | No felony drug convictions on student's records | Felony drug convictions are permitted | |
| Qualified expenses | Tuition and required enrollment fees. Course-related books, supplies, and equipment do not need to be purchased from the institution in order to qualify. |
Tuition and required enrollment fees (including amounts required to be paid to the institution for course-related books, supplies, and equipment). | |
| Payments for academic periods |
Payments made in 2012 for academic periods beginning in 2012 and in the first 3 months of 2013 |
||
For additional information about Education Credits please refer to
http://www.irs.gov/instructions/i8863/ch01.html
Student Loan Interest
What is the tax benefit for interest paid on educational loans?
If your modified adjusted gross income (MAGI) is less than $75,000 ($150,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2012.
The amount of your student loan interest deduction for 2012 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $60,000 and $75,000 ($120,000 and $150,000 if you file a joint return). You cannot take a deduction if your MAGI is $75,000 or more ($150,000 or more if you file a joint return).
The student loan interest deduction is taken as an adjustment to income. You may claim this deduction even if you do not itemize deductions on Schedule A.
For Additional Information, Please review the Federal Tax Benefits at a Glance and the Student Loan Interest Deduction in the:
Guide to federal Tax Benefits for Higher Education
