Tax Information

The Hope Scholarship Tax Credit

The Hope Scholarship Tax Credit is actually a federal tax credit program, not a scholarship. Your family must file a federal tax return and owe taxes.* The Hope credit is not refundable for families who do not pay taxes, who owe less in taxes than the maximum amount of the Hope tax credit for which the family is eligible, or who receive financial assistance that pays their tuition and fees.

Your family may claim a tax credit of up to $1,500 per tax year for each eligible dependent. This can be done for up to two tax years. Your family may claim up to 100% of the first $1,000 of eligible expenses and 50% of the next $1,000 for a maximum credit of $1,500.

The actual amount of the credit depends on your family's income, the amount of qualified tuition and fees paid, and the amount of certain scholarships, grants and exemptions subtracted from tuition. The total maximum credit also is based on the number of eligible dependents.

In early February, federal income tax form 1098T will be mailed to you and the IRS for reporting your enrollment for the past fiscal year. Be certain that Lone Star College System has your correct mailing address on file.

The American Opportunity Credit

Who says you can't get a break these days?  The American Recovery and Reinvestment Act may give you the break you're looking for - help paying for college. 

The American Opportunity Credit is worth up to $2,500 of the cost of tuition and related expenses.  You can claim it on your 2009 and 2010 tax returns.  The credit amount starts phasing out if you make more than $80,000, or $160,000 if you're filing a joint return.  Even if you don't make enough money to file a return, file anyway because you may get up to $1,000 back.

And if you have a section 529 college savings plan, you can spend those funds on a computer that's used for college. 

You don't need a course in rocket science to learn how it pays to go to college - visit http://www.irs.gov/recovery.

*Lone Star College System does not do your taxes for you.

What is a form 1098-T?

The IRS Form 1098-T (Tuition Statement) is issued to all students who attended an eligible educational institution and paid qualified tuition and fees during the previous calendar year. The information on Form 1098-T is used to determine if you are eligible to claim an education credit on your Federal Income Tax Return for the previous calendar year.

When will the forms 1098-T be mailed?

Forms 1098-T must be postmarked by January 31st. You should receive your form 1098-T no later than the end of the first week in February.

Where will the forms 1098-T be mailed?

Forms 1098-T will be mailed to your permanent address on file with the college you attended.

What should I do if I haven't received my form 1098-T?

If you have not received a form 1098-T by the end of the first week in February copies can be obtained at www.ecsi.net/1098T (use school code EV) or by calling 1-866-428-1098.

I was in the TCP (Teachers Certification Program) but never received my 1098-T.

The Teachers Certification Program is a non credit hour program, therefore tuition and fees are not reportable on Form 1098-T.

What information is reported on form 1098-T?

Qualified educational institutions are required to report the following for each student with qualified tuition and fees during the previous calendar year:

• Social security number

• Name

• Address

• Either payments received (Box 1) or amounts billed (Box 2) for qualified tuition and related expenses (Lone Star College System reports "amounts billed" in Box 2)

• The amount of scholarships or grants and tuition waivers received (Box 5)

• Whether you were enrolled as at least a half-time student (Box 8)

• Whether you were enrolled as a graduate student (Box 9)

What amounts are included in Box 2, "Amounts billed for qualified tuition and related expenses?"

Lone Star College System reports eligible tuition and fees using the "Invoice Billing Date" method. The amount in Box 2 represents the amount billed to you for registration activity during the previous calendar year.

If you have questions regarding the amounts in either Box 2 or 4, please contact the Business office at the campus you attended during the previous calendar year.

If you have questions regarding the amounts in either Box 5 or 6, please contact the Financial Aid office at the campus you attended during the previous calendar year.

Lone Star College System does not provide tax return preparation assistance. To determine if you qualify for one of the education tax credits, or for more information regarding tax benefits for education, consult IRS Publication 970, your tax advisor, or the IRS by calling 1-800-829-1040 or visiting them online at http://www.irs.gov.