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 2013 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 2013 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, 2013 January/Spring term charges may not be included, due to billing date. However, 2014 January/Spring term charges may be included, if billed prior to December 31, 2013.

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 2013 for the applicable year. 

Education Credits

(American Opportunity and Lifetime Learning Credits)

Comparison of Education Credits:

Caution.  You can claim both the America opportunity 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 during the taxable year   Up to $2,000 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)

$127,000 if married filling jointly;

$63,000 if single, head of household, or qualifying widow(er)

Refundable or nonrefundable 40% of the credit (up to $1,000) may be refundable; the rest is nonrefundable.  This means you can get it even if you owe not tax. Nonrefundable--Credit limited to the amount of tax you must pay on your taxable income
Number of years of postsecondary education Available ONLY if the student had not complete the first 4 years of postsecondary education before 2013   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 including any year(s) Hope Credit was claimed   Available for an unlimited number of years
Type of degree required Student must be pursuing a program leading to a degree or other recognized education credential  Student does not need to be pursuing a program leading to 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 As of the end of 2013, the student had not been convicted of a felony for possessing or distributing a controlled substance Felony drug convictions do not make the student ineligible
Qualified expenses Tuition, required enrollment fees, and course materials that a student needs for course of study whether or not the materials are bought at the educational institution as a condition of enrollment or attendance. 
 
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 2013 for academic periods beginning in 2013 or beginning in the first 3 months of 2014



For additional information about Education Credits, please refer to:

http://www.irs.gov/pub/irs-pdf/p970.pdf

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  if single, head of household, or qualifying widow(er) ($155,000 if married 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 2013.

The amount of your student loan interest deduction for 2013 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $60,000 and $75,000 ($125,000 and $155,000 if you file a joint return). You cannot take a deduction if your MAGI is $75,000 or more if single, head of household, or qualifying widow(er) ($155,000 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 about Student Loan Interest credits, please refer to:
http://www.irs.gov/publications/p970/ch04.html

 

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