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 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.
IRS Form 1098-T
An IRS Form 1098-T (1098-T) is used by educational institutions 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 are payments, grants and scholarships that applied to qualified charges. 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.
Viewing Your 1098-T
If you were enrolled in credit courses the previous tax year, an electronic copy of your 1098-T will be available by January 31.
To view your 1098-T:
- Go to the MyPCC Paying for College tab
- Click Student account information
- Click View/Print 1098T Tax Notification Form
- Enter the Tax Year
1098-T Delivery consent
If you prefer to receive a paper 1098-T, you may opt-out of electronic delivery by withdrawing your 1098-T Electronic Delivery Consent. You must withdraw your consent before the end of the tax year via the My Records link in MyPCC Quick Links. If you withdraw it, we will send an email to your MyPCC account confirming that we have received your paper delivery request.
Caution!
The fees reported may not be eligible in your situation, and there may be other eligible expenses, such as books and supplies that PCC does not report. To determine which fees are eligible for you, consult a tax advisor or review IRS Publication 970.