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The University of Arkansas' sole responsibility regarding the Hope Scholarship
and Lifetime Learning tax credits is to furnish Form 1098-T to students incurring
tuition and related expenses. It is not responsible for, and is prohibited
by law, from giving tax advice. Taxpayers should contact their tax advisor
or the Internal Revenue Service for guidance.
Hope Scholarship
The Hope Scholarship is a tax credit (reduces the amount of income
tax you may have to pay) available to taxpayers for the first two
years of postsecondary education. After all tax-free educational assistance
and refunds are subtracted, it allows taxpayers to claim a maximum
of $1,650 per student per return.
Each student claimed must be pursuing an undergraduate degree, certificate,
or other recognized education credential, and enrolled at least half time for
at least one academic period beginning during the year. Students must also
be free of any federal or state felony conviction for possessing or distributing
a controlled substance as of the end of the tax year.
The Hope credit is gradually reduced for individuals whose modified gross
income (MAGI) is between $47,000 and $57,000 ($94,000 and $114,000 if a joint
return is filed). It cannot be claimed for individuals whose MAGI is $57,000
or more ($114,000 or more if a joint return is filed). It cannot reduce tax
liability to less than zero.
For complete information on the Hope Scholarship see  IRS Publication
970 (PDF), Tax Benefits for Education.
Lifetime Learning Credit
The Lifetime Learning Credit is a tax credit (reduces the amount of income
tax you may have to pay) available to taxpayers for each year of post-secondary
education and for courses taken to acquire or improve job skills. After
all tax-free educational assistance and refunds are subtracted, it allows
taxpayers to claim up to $2,000 of remaining qualified education expenses
per return, regardless of the number of post-secondary students in the family.
Students are not required to be pursuing a degree or other recognized education
credential. And the felony drug rule convention does not apply.
The Lifetime Learning Credit is gradually reduced for individuals whose
modified gross income (MAGI) is between $47,000 and $57,000 ($94,000 and
$114,000 if a joint return is filed). It cannot be claimed for individuals
whose MAGI is $57,000 or more ($114,000 or more if a joint return is filed).
It cannot reduce tax liability to less than zero.
For complete information on the Lifetime Learning Credit see IRS
Publication 970 (PDF), Tax Benefits for Education.
IRS Form 1098-T (Tuition Payments Statement)
IRS Form 1098-T is a tuition payments statement that will assist taxpayers
in calculating any education tax credit that they may be eligible for under
the Hope Scholarship and Lifetime Learning tax credits. If eligible, this
form will be used to complete IRS
Form 8863, which attaches to the taxpayers
return.
The 1098-T contains the filer's (University of Arkansas at Fayetteville) address,
Federal Tax ID number and contact information, along with the student's name,
address, social security number, and enrollment status. More importantly, the
1098-T contains the qualified tuition and related expenses billed to the student
by the University during the calendar year. It also displays the amount of
any scholarships or grants received by the student during the calendar year.
Qualified tuition and related expenses are defined by the IRS as "tuition
and fees required for enrollment or attendance." In general, not all charges
incurred during a calendar year will meet IRS requirements--which is why the
figure in Box 2 will probably not match total charges for the calendar year.
University charges that the IRS considers non-qualified are listed in the table
below, along with contact numbers for questions about the amounts listed on
the 1098-T.
To get a copy of your current 1098-T or a Student Account Summary see 1098-T
Information.
FAQs
IRS Forms and Publications
Related Forms and Publications for Students
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