1098-T Supplement

TRA TAX CREDITS

**Please print this page and the subsequent account summary link noted below to include with your tax records.**

As provided in the Taxpayer Relief Act of l997, taxpayers may be eligible for a Hope Scholarship or Lifetime Learning federal tax credit for certain expenses paid for higher education for themselves and their dependent children.

An IRS Form 1098-T will be mailed no later than January 31 to Tennessee Technological University students enrolled, or having enrollment transactions, during the previous year; however, the issuance of this form does not imply eligibility to claim the tax credit.

Prior to tax year 2003, dollar amounts were reported to students with no dollar amounts being reported to the IRS. Beginning with tax year 2003, the University is required to report dollar amounts to the IRS. There are regulations regarding family income, number of times the tax credit may have already been taken as a Freshman, who claims the student as a dependent, etc., that institutions have no way of knowing. Given these circumstances the IRS has provided different reporting rules for the institutions. The dollar amount that appears in Box 2 of the 1098T form will represent the qualifying expenses assessed or charged to the student in the calendar year 2003. This may or may not include spring term 2003 charges and/or spring term 2004 charges (depending upon which calendar year the student registered for classes). The amount in Box 4 (Scholarships or Grants) will be the awards credited to the student's account during the calendar year 2003. Other information reported is the enrollment status (Box 8) and graduate student (Box 9).

Click here for a summary of all financial transactions on your student account. Choose "Registration, Grades, Student Services, Bill Payment", Enter your Student ID and Personal Access Code and then choose "IRS Form 1098-T Information" under the Student Records section and select the appropriate tax year. Note:  You will need to print this summary and take it to your tax advisor.

This summary is being provided to help you and your tax advisor determine the amount of any credit to which you may be entitled. Transactions were categorized using the following information from IRS Publication 970, Education Tax Credits, and Publication l7, chapter 36, Education Credits.

In general, qualified tuition and related expenses are tuition and fees required for enrollment or attendance at an eligible educational institution. Fees for course-related books, supplies and equipment, and student activity fees are included in qualified tuition and related expenses only if the fees must be paid to the institution as a condition of enrollment or attendance. Qualified tuition and related expenses do not include the cost of insurance, medical expenses, room and board, transportation or similar personal, living or family expenses, even if the fee must be paid to the institution as a condition of enrollment or attendance.

Offsetting grants and scholarships include tax-free scholarships, tax-free federal grants, tax-free employer-provided educational assistance, and other non-taxable funds which can not be included in the tax credit amount. You may, however, claim a credit for qualifying expenses paid with loans.

The above information is based upon the University’s interpretation of IRS guidelines and should not be considered official tax advice. Questions about the categorization of transactions on the summary, eligibility to claim the tax credit, limitations of the tax credit amount, and filing information should be directed to an IRS representative or other tax professional. Please contact the University only if you have a question about the payment deadlines or detailed transactions appearing on the summary. Tax credit information is also available in publications which may be accessed on the IRS web site. Please download:
http://www.irs.gov/pub/irs-pdf/p970.pdf

Persons qualifying for the tax credits must prepare IRS Form 8863 (PDF) and attach it to their tax forms submitted to the IRS.