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RD
RD, Certified Public Accountant (CPA)
Category: Tax
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Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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I received a 1098-T and cant find any ...

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I received a 1098-T and can't find any information on how or where to report this. There are only entries in box #1 & box #4. Can you please help me?
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Submitted: 10 years ago.
Category: Tax
Expert:  RD replied 10 years ago.
Form 1098T is a tuition statement.
The net amount Box 1 minus box 4 is the payments made by you for education.

See the instructions for Form 1040, line 34, on page 34, or line 50, on page 40(FORM 1040 instructions) , and the instructions on Form 1098-T at this link
http://www.irs.gov/pub/irs-pdf/f1098t.pdf

This is a brief explanation of the EDUCATION CREDIT:
There are three tax benefits for college education expenses: the tuition and fees tax deduction (Form 1040, line 27), the Hope Credit, and the Lifetime Learning Credit. The Tuition and Fees deduction reduces taxable income. The Hope Credit and Lifetime Learning Credit, however, provides a tax credit based on a percentage of your qualified college expenses. Generally, taking a tax credit will provide a greater benefit than a deduction. The education tax credits are calculated on Form 8863 (PDF).
Hope Credit
The Hope Credit is a tax credit for college students in their first two years of college. It provides a tax credit of up to $1,500 on the first $2,000 of college tuition and fees You can claim the Hope Credit on your tax return if you, your spouse, or your dependent are a first-year or second-year college student, is enrolled at least half-time at an eligible education institution, and you were responsible for paying college expenses.
Lifetime Learning Credit
The Lifetime Learning Credit is a tax credit for any person who takes college classes. It provides a tax credit of up to $2,000 on the first $10,000 of college tuition and fees. You can claim the Lifetime Learning Credit on your tax return if you, your spouse, or your dependents are enrolled at an eligible educational institution and you were responsible for paying college expenses. Unlike the Hope Credit, you need not be enrolled at least half-time. Even if you took only one class, you may take advantage of the Lifetime Learning Credit.

Let me know if you have any question.
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Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.

Customer: replied 10 years ago.
Reply to Renu V's Post: This is not situation. This is for a student loan and I received it from ITT Technical Institute.. Box 1 is for Payments received for Qualified tuition & related expenses in the amount of $879. Box 4 is Scholarships or Grants in the amount of $1350, of which I had neither. I was at least a half-time student. Customer
Expert:  RD replied 10 years ago.
How much did you pay for the education? other than scholarship that you received...
Customer: replied 10 years ago.
Reply to Renu V's Post: I did not pay for anything.
Expert:  RD replied 10 years ago.
Normally Grants and scholarships received in excess of tuition, fees, books, supplies and equipment are considered taxable income. It is the your responsibility to report this income on their U.S. tax return. So if you box 4 amount is higher than amount reported on box 1, you may be required to report the difference as other income unless the balance was used for some qualfied education purposes.


Let me know if you have any question.
[email protected]

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.


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