tax information for students

AMERICAN OPPORTUNITY TAX CREDIT - 1098-T INFORMATION

The Taxpayer Relief Act of 1997 created tax credits to help families with out-of-pocket college expenses. These credits took effect in 1998. Hillsborough Community College is required by the Internal Revenue Service to provide each student enrolled during the calendar year 2011 with IRS Form 1098-T.

HCC has partnered with Educational Computer Systems, Inc., (ECSI), to provide you with your 2011 1098-T Tax Form. You will be notified, by postcard or email, with instructions on how to access, view, and/or print your 1098-T Form.

Tax credits such as the Hope Credit (for students enrolled at least half-time in the first two years of postsecondary education) and the Lifetime Learning Credit (for students taking one or more courses) are available. The tax credit amounts are based on the amount paid for qualified tuition and related expenses from January 1, 2011 through December 31, 2011, as well as your income.

To obtain detailed information on education tax credits, please refer to IRS Publication 970. Copies may be obtained by calling 1-800-TAX-FORM or on the Internet, refer to http://www.irs.gov/. Your tax advisor or the local IRS Office can also be contacted for further information. ECSI’s link is:  https://www.ecsi.net/cgi-bin/webx.exe  This is where we can print student’s 1098T form.  ECSI’s telephone number is 866-428-1098.   

FYI:  Students who attended classes at HCC in 2011 but didn’t receive their 1098T form because: 

  1.    Financial aid paid their tuition & fees 

  2.    Sponsor paid their tuition & fees.  (This year, TIPS & Florida Prepaid program are not included as sponsors.

         In other words, fees paid by them are included in the box 2 of 1098T form.) 

   3.    11/SP classes were registered in 2010 and never add any classes in 2011. 

          You can view the 2010 - 1098T form on the following link. http://www.irs.gov/pub/irs-pdf/f1098t_10.pdf

If you have a question regarding tuition payments, please call at 1-877-736-2575 or visit HCC Live (http://hcclive.hccfl.edu/ics/support/default.asp?deptID=8283).

What is the American Opportunity Tax Credit (AOTC)? The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $2,500 for out of pocket higher education expenses for course materials, tuition, and fees in 2009 and 2010. On November 09, 2011, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extended the AOTC for two additional years until Dec. 31, 2012. The Internal Revenue Service Publication 970 provides detailed information, useful examples and guidance on all of the educational benefits of the tax code, including the new American Opportunity Tax Credit. If you have more specific questions, we strongly encourage you to consult the financial aid office of your institution, a qualified tax advisor or legal professional about your unique situation, and consult the 2010 Internal Revenue Service Publication 970 when it is released later this year.

What course materials are eligible for the tax credit? The ARRA specifies that "required" course materials are eligible for the tax credit as well as tuition and fees that have not been paid for by grant or scholarship aid. In other words, you may not receive a double benefit for your qualified expenses. Required course materials have been defined by the IRS in other educational tax benefit programs as including books, supplies, and equipment that are required for the courses at the eligible educational institution. As a practical matter, it would be fair to assume that any purchased course materials identified as required and listed on a course book list for your registered classes would likely qualify for the tax credit. What necessary documentation will we need for the tax credit?

According to the IRS, taxpayers should retain adequate documentation to prove education-related expenses, such as transcripts or course descriptions that show periods of enrollment, list of course materials for your classes, cancelled checks, and receipts that verify the amounts spent on tuition, books, supplies, and equipment used in a course of study. IRS Publication 552 (Recordkeeping for Individuals) addresses this issue.

Informational Links and Flyers:

Textbook Aid Information Flyer

American Opportunity Tax Credit Link

Informational Videos:

American Opportunity Basic Information Video 

Electronic 1098T