Taxpayer Relief Act of 1997
The Taxpayer Relief Act (TRA) of 1997, enacted by Congress and the President, created two new tax benefits for families who are paying for higher education. There are also benefits for people who are repaying student loans. Whether you may take advantage of the tax credits depends on your individual facts and circumstances. UNCW cannot provide tax advice, only confirm and explain what we have reported. Contact your tax consultant to determine if you are eligible for the tax credits or visit the Internal Revenue Service’s web site at www.irs.gov or http://www.irs.ustreas.gov/faqs/faq7-4.html. IRS Publication 970 “Tax Benefits for Education” is also a good resource for information on this topic; http://www.irs.gov/pub/irs-pdf/p970.pdf.
A 1098-T form will be mailed to students in late January to the student’s permanent address on file. The 1098-T form will inform the student or taxpayer of the possibility of a tax credit for payment of eligible tuition and fees under the guidelines of the Taxpayer Relief Act of 1997. It is the taxpayer's responsibility to determine eligibility for this tax credit. The amount of eligible billed charges, along with scholarships or grants received by the student, will be provided for each student on the 1098-T form and on SeaNet to assist in determining a possible tax credit. The amounts provided on the 1098-T form are calculated as follows:
- Billed qualified tuition and fees.
- Scholarships or grants - Total scholarships or grants credited to the students account
Frequently Asked Questions for 1098-T
