American Opportunity Credit (formerly Hope) and Lifetime Learning Credits

In an effort to make college more affordable,

Congress included in the Taxpayer Relief Act of 1997 (TRA97),

the American Opportunity Tax Credit and the Lifetime Learning Tax Credit.

• In box two of form 1098-T, we are reporting your qualified tuition and fees billed for the calendar year, from  January 1 through December 31, net of any refunds or reimbursements.
• In box four, we are reporting any adjustments made for a prior year.
• In box five, we are reporting grants and scholarships disbursed during calendar year.
• In box six, any adjustments to scholarships and grants for a prior year.

You will need to rely on your own records to identify qualified tuition and fees paid. The detail supporting the amounts reported for calendar year can be found on your transact account under tax forms. 

American Opportunity tax credit: The American Opportunity provides tax credits to taxpayers that pay qualified tuition and required fees for attending college on at least a half-time basis. This credit is designed to offset tuition costs incurred during the first four years of college. It may only be used four years for any particular student. This credit is available for tuition and required fees paid minus certain grants, scholarships, and other tax-free educational assistance. The maximum credit is $2,500 per student.

Lifetime Learning tax credit: Like the American Opportunity credit, the Lifetime Learning provides tax credits to taxpayers that pay qualified tuition and required fees at an eligible institution. It differs from the American Opportunity in that the student is not required to be half time. A family may claim a credit for up to $2,000 per tax year. The Lifetime Learning tax credit is available for tuition and required fees paid less certain grants, scholarships and other tax free educational assistance.

Anyone planning to make use of the credit will need much more specific information than is provided above.

Listed below are some sources of more detailed information:

• Oregon IRS phone number: 1-800-829-1040
• Form 8863 and supporting instuctions are available on the World Wide Web at:  http://www.irs.gov/pub/irs-pdf/f8863.pdf
• Tax Benefits for Education: http://www.irs.gov/pub/irs-pdf/p970.pdf

Western Oregon University employees cannot offer tax advice. However, if you have questions about the information provided, you may contact a Western Oregon University representative at (503) 838-8201.

You should be aware that the law creating these credits requires the University to provide the name and social security number of all enrolled students to the IRS. It is important that the information be accurate. Please review the social security number on your 1098-T for accuracy. If incorrect you will need to provide a copy of your social security card to the Business Office.