Educational Tax Credits
Tax Credits Save Money
The Taxpayer Relief Act of 1997 (TRA) created tax credits to help families meet the cost of a college education. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself. Income limits and other restrictions may apply. In addition to deduction for educational loan expenses, the Act created two tax credits:
- The American Opportunity Credit (formerly known as the Hope Scholarship), which is tax credit of up to $2,500 per student for qualified education expenses for the first four years of post-secondary education for students who are enrolled at least half-time in one academic period during the tax year.
- The Lifetime Learning Credit, a tax credit of up to $2,000 per tax return. This credit applies to eligible tuition and fees for undergraduate, graduate and continuing education course work taken to acquire or improve job skills.
Complete information on educational tax credits is provided in IRS Publication 970. Additional information on the treatment of educational tax credits by the State of Oregon is available through the Oregon Department of Revenue.
1098-T Form
The 1098-T form is used by eligible educational institution to report information about their US resident students to the IRS. As an eligible educational institution, PCC reports certain enrollment and identifying information about US resident students who attend during the tax year. Included in the 1098-T form are qualified charges that were billed and financial assistance, excluding loans. PCC is not required to provide 1098-T forms to students who are non-resident aliens for tax purposes. If you plan to claim an educational tax credit, your social security number is required.
Receiving Your 1098-T Form
The 1098-T form is available by January 31 each year for all students who were enrolled in credit courses. PCC delivers 1098-T forms electronically via the "My Records" link on the MyPCC Home tab. To opt-out of receiving an electronic copy, the student must call the Student Account help line during normal business hours at 971-722-4234 prior to the end of the tax year. For students who opt-out, the 1098-T form will be sent by mail to the student's most recent address on file with the college.
CAUTION!
The fees reported may not be eligible in your situation, and there may be other eligible expenses, such as books and supplies that the College does not report. To determine which fees are eligible for you, please consult a tax advisor or review IRS Publication 970.