FAQ - Tax Credits
American Opportunity Credit
What is the American Opportunity Credit?
This is a modification of the Hope credit; this new education tax credit is available for 2009 & 2010.
What is the amount of the American Opportunity Credit?
The maximum credit per student is $2500. (100% of the first $2,000 and 25% of the next $2,000 of qualified education expenses).
How do I qualify for the credit?
The credit is available for the first 4 years of the postsecondary education and 40% of the credit (up to $1,000) is refundable for many taxpayers. The amount of your credit for 2009 is gradually reduced (phased out) if your modified adjusted gross income (MAGI) is between $80,000 & $90,000 if you are single or between $160,000 and $180,000 if you file a join return.
Where do I find more information about the American Opportunity Credit?
You may find it in IRS Publication 17, Charter 35 at: www.irs.gov
What form do I use to claim the Tax Credit?
Use IRS Form 8863. It is available on the IRS website
What expenses are eligible for the American Opportunity credit?
Qualified education expenses include amounts spent on books, supplies, and equipment needed for a course of study, whether or not the materials are purchased from the educational institution as a condition of enrollment or attendance.
LIfetime Learning Credits
Who can claim the Lifetime Learning Credit?
The Lifetime Learning credit is available to students in all years of postsecondary education and for courses to acquire or improve job skills.
What are the qualified expenses for the Lifetime learning credit?
Qualified education expenses include only amounts for books, supplies and equipment required to be paid to the institution as a condition of enrollment or attendance.
General Tax Credit Questions
When I use student loans to pay tuition expenses, do I qualify to claim tax credit?
Yes, student loans are considered your personal funds, they are not considered financial aid or scholarship money. You are still qualified to claim the tax credit if you meet the requirement.
What is a Tuition and Fees Deduction and when would I use this?
The tuition and fees deduction is for taxpayers who cannot take the American Opportunity or Lifetime Learning credit because their income is too high. To learn more about the tuition & fees deduction, please see IRS Form 8917
How do I find out how much interest I paid on a student loan?
Contact your loan servicer and request form 1098E.
Where can I get help at the University of Washington when I have a tax issue with the IRS?
UW law school has a Federal Tax Clinic which was established in 2000 to assist low-income individuals throughout Western Washington resolve disputes with the Internal Revenue Service. The federally-funded clinic offers this assistance as a public service and as a means of training law students in tax practice.
For more information, please visit the Law school website.
May I get a 1098T Form for previous years?
Yes, you may print a prior year 1098T form from the MyUW Student Finances tab, Tax just 1098-T Federal Tax Information Statement.
When will the 1098T be available?
The forms will be mailed out by the end of January. If you are currently enrolled, it will be mailed to your billing address. If you are not enrolled, it will be sent to your permanent address. Prior to receiving the 1098T, you may review your account information on MyUW. You may also print a copy of your 1098T form from MyUW Student Finances tab, under the Tax category.
How can I get a corrected 1098T?
If you need corrections to your 1098T for the current year, please contact Student Fiscal Services at 206-221-2621 or send an email to taxquest@u.washington.edu. Include your contact information and details of what needs to be corrected. After we review your record, you may request that a corrected 1098T form be mailed to you or you may print the information from MyUW Personal Services the day after your request. If you are attending a UWEO program, you need to contact the UWEO office at 206-685-6330 before any corrections may be made to you account.
I paid my tuition through UW Professional and Continuing Education, why is the payment information listed under the grant/aid section?
If the person who paid the bill had a different name than the official student name in the database, then it may be listed as grant/aid payment on the 1098T form. Please contact the UWPCE office at 206-685-6330 for corrections.
As Professional and Continuing Education student, why does the 1098T statement say “No” in regards to either being a full-time student, graduate or undergraduate student?
UWPCE does not use the student class code information that the main campus uses. When their files are sent to print the 1098T form, it will have no indication whether a student is enrolled full-time or part time or whether they are a graduate or undergraduate student.
What happens if my Financial Aid or scholarship money is more than the tuition expenses?
Any financial aid or scholarship money not used to pay for tuition or education expenses is taxable income; you may have to report it when you file a tax return.
International Students
As an international student am I eligible for the American Opportunity or Lifetime learning credit?
No. If you are a nonresident student and on visa status at the UW, you will not receive a 1098T form; you do not qualify for tax credit. To learn more, please see IRS Publication 970
Why didn’t I receive a 1042S form from payroll this year?
According to the new IRS requirements, the UW does not have to report any tuition exemptions or tuition waivers for international students. Nonresident foreign students who have received U.S. funds that exceed tuition charges will be reported to the IRS, only this group of students will get a copy of the 1042S form.
What if my country has a Tax Treaty benefit with the U.S.?
To claim the Tax Treaty benefit, you need to fill out a W8-BEN form and send it to the Student Fiscal Services or the Payroll office. Your department should have this form if you are not able to print a copy from the IRS website.
What if my country does not have a Tax Treaty Benefit with the U.S.?
If your country does not have a Tax Treaty Benefit with the U.S., you will need to pay U.S. taxes if you receive U.S. source income that exceeds the amount of the tuition expenses.