The Taxpayer Relief Act of 1997 provides tax benefits for persons who are paying college costs for themselves and members of their families. Among the benefits are two education tax credits – the Hope credit and the Lifetime Learning credit.
1098-T forms were delivered to your mailbox January 25. The IRS requires that Maranatha, along with other eligible institutions, present a 1098-T to students who were at least half-time during any semester in 2006. Receipt of a 1098-T implies that you may be eligible for the Hope or Lifetime Learning credits.
And my next step? You need to compute your “Adjusted Qualified Expenses” to complete the required IRS Form 8863. Refer to the insert, Tax Benefits for Maranatha Students, included with the 1098-T. More copies may be picked in the Business Office. The 1098-T has been issued with a total of your qualified expenses. You must subtract any required adjustments. In a nutshell, the Adjusted Qualified Expenses form is the sum of your tuition, class fees, and Comprehensive Fee Fees minus Pell grants, scholarships, and other non-taxable payments.
You will need IRS Form 8863 to claim the Hope or Lifetime Learning credits. This form can be secured from the Business Office. Tax accountants and other tax return processors will have this form as well.
If you still have questions, contact the Business Office.