IRS 1098-T Educational Tax Credit

Champlain College provides the IRS 1098-T statement by January 31st for the previous tax year for students for preparation of their tax forms.

For 2011, there are two tax credits available to help you offset the costs of higher education by reducing the amount of your income tax. They are the American Opportunity credit and the Lifetime Learning credit.

Please refer to the IRS Publication 970, Tax Benefits for Education for use in preparing your 2011 tax return. A link to this publication is listed below with other helpful links.

1098-T Forms will be mailed by January 31, 2012. Reprints are available on Web Advisor, under "Student Accounts." See "View/Reprint 1098T." Please remember Web Advisor requires student sign-in and password.

Student Loan Interest Deduction

You may be able to deduct interest you pay on a qualified student loan even if you took out the loan before 2007. For further information, please refer to IRS Publication 970.

Adjustments to Qualified Expenses

Payments of qualified tuition and related expenses from personal resources (earnings, personal savings, gifts, loans or inheritances) made by the student or by the taxpayer to whom the student is a dependent are taken into account in calculating the credit amount. Payments made with a Pell Grant or other tax-free scholarships, veterans benefits, a tax-free distribution from an Education IRA, or tax-free employer-provided educational assistance do not qualify as payments for purposes of the American Opportunity or Lifetime Learning Credits.

Other Information

• Some limitations including certain income limitations apply to all tax credits as well as the Student Loan interest deduction. Please consult the IRS or your tax consultant for further information.

Please click below for further information on education tax benefits:

• Internal Revenue Service Web site
• Tax Benefits for Education: Information Center
• IRS Publication 970 -- Tax Benefits for Higher Education (Latest Edition 2010)
• IRS Form 8863 -- Education Credits