Demystifying Form 1098-T: A Guide for College Students

📜Form 1098-T is a crucial document for college students as it allows them to claim the American Opportunity Tax Credit.

💰The American Opportunity Tax Credit can be worth up to $2,500, providing a significant reduction in taxes for eligible students.

🎓Undergraduate students are generally eligible for the American Opportunity Tax Credit, while graduate students may qualify for the Lifetime Learning Credit.

🔑Make sure to obtain Form 1098-T from your college or university and provide it to your tax preparer or enter the information correctly in tax software.

🧾Box 1 of Form 1098-T shows the amount of tuition and related expenses paid, which is crucial for calculating education tax credits.

What is Form 1098-T?

—Form 1098-T is a tax form provided by colleges and universities to report information about a student's qualified tuition and related expenses.

Who is eligible to claim the American Opportunity Tax Credit?

—Undergraduate students who are enrolled at least half-time in an eligible educational institution and have qualified education expenses may be eligible to claim the American Opportunity Tax Credit.

Can graduate students claim the American Opportunity Tax Credit?

—No, graduate students are not eligible for the American Opportunity Tax Credit. However, they may qualify for the Lifetime Learning Credit or other education-related tax benefits.

How do I obtain Form 1098-T from my college or university?

—You can usually access Form 1098-T through your college or university's online portal or financial account page. If you have trouble finding it, contact the institution's financial office for assistance.

What should I do with Form 1098-T when preparing my taxes?

—Provide Form 1098-T to your tax preparer or enter the information accurately in your tax software. It contains essential details needed to calculate education tax credits.

00:00Form 1098-T is a crucial document for college students as it allows them to claim the American Opportunity Tax Credit.

02:22Make sure to obtain Form 1098-T from your college or university and provide it to your tax preparer or enter the information correctly in tax software.

03:43Undergraduate students are generally eligible for the American Opportunity Tax Credit, while graduate students may qualify for the Lifetime Learning Credit.

05:05Box 1 of Form 1098-T shows the amount of tuition and related expenses paid, which is crucial for calculating education tax credits.

06:25Form 1098-T is a tax form provided by colleges and universities to report information about a student's qualified tuition and related expenses.