Scholarships and Taxes

SRJC students have access to 1098-T forms (Tuition Payment Statement) in January for the previous tax year via the student portal. It is up to students to determine for themselves, or with the advice of their tax advisors, what amounts should be used for the Hope Scholarship Credit, Lifetime Learning Credit or the American Opportunity Tax Credit. You will need to file Form 8863 (Education Credits) to claim the education tax credits.

NOTE: Scholarship awards in excess of the cost of tuition and required fees, books, supplies and school mandated equipment are subject to federal income taxation. Students are encouraged to keep receipts for these expenses each year and contact the IRS or a tax professional for more information.

 

Financial Aid TV (FATV) provides current and prospective students and families with instant 24/7 access to short videos that discuss important financial aid topics including Education Tax Benefits and Credits (as seen above). Click on FATV to get quick and easy-to-understand answers to many of your other general financial aid questions.

 

Student Form 1098-T Information via Student Portal.
Note: After logging onto your student portal, select the Function "Tax Credit" then click the "Submit" button.

1098-T Informational Web Site

Lifetime Learning Tax Credit
Taxpayers may be able to claim a Lifetime Learning Tax Credit of up to $2,000 for the total qualified tuition and related expenses paid during the tax year for all eligible students or dependent students who are enrolled in eligible educational institutions.

  1. The Lifetime Learning Tax Credit is not based on the student's workload. It is allowed for one or more courses.
  2. The Lifetime Learning Tax Credit is not limited to students in the first two years of post-secondary education.
  3. There is no limit on the number of years for which the Lifetime Learning Tax Credit can be claimed for each eligible student.
  4. The amount you can claim as a The Lifetime Learning Tax Credit does not vary (increase) based on the number of eligible students for who you pay qualified expenses.

American Opportunity Tax Credit

The American Opportunity Tax Credit (AOTC) can help parents and students pay part of the first four years of college. Eligible taxpayers may qualify for a tax credit up to $2500 per year. The tax credit now can be received for tuition and related expenses. For more information on the AOTC and the American Recovery & Reinvestment Act visit: www.irs.gov/uac/American-Opportunity-Tax-Credit

The credit amount starts phasing out for individuals making more than $80,000 and for married couples making more than $160,000. Students who don’t earn enough to file a tax return should consider filing anyway because they may get up to $1000.00 back.

For a more detailed Q & A on Tax Credits, visit: http://www.irs.gov/publications/p970/index.html

Volunteer Income Tax Assistance

The Volunteer Income Tax Assistance (VITA) program also offers free tax help to people with a gross annual income at or below $52,000 who need assistance preparing their tax returns. To take advantage of this tax credit you can contact the Volunteer Income Tax Assistance (VITA) program @ 1-800-906-9887.

Additional Information

Internal Revenue Services
To obtain/view copies of Internal Revenue Service publications, including Publication 970 Tax Benefits for Higher Education

IRS Telephone Assistance: (800) 829-1040

IRS Local Taxpayer Assistance Center: (707) 523-0924