Education Tax Benefits

We would like to remind you of the Federal educational tax benefits for which you may be eligible. Taking full advantage of these tax benefits would help reduce your higher education expenses.

The following information is intended for educational purposes and should not be considered legal or tax advice. Please consult your professional tax advisor or attorney for more information and to determine your eligibility. The University cannot provide legal or tax advice to individuals.

To help students and their parents, the Internal Revenue Service offers the following ways to offset education costs:

-American Opportunity Credit
-Lifetime Learning Credit
-Tuition and Fees Deduction
-Student Loan Interest Deduction

For more information on the education benefits listed above, see Publication 970, Tax Benefits for Education, which can be obtained at http://www.irs.gov/pub/irs-pdf/p970.pdf or by calling the Internal Revenue Service (IRS) at 800-TAX-FORM (800-829-3676).

The University reported the total amount billed to you in box 2 of the 1098-T form. Please review your account activity in QuikPay_at_UVa to obtain a record of your payment information; you will need this payment information to calculate your tax credits. Parents, if your student has not set you up as an authorized payer in QuikPay_at_UVA, we recommend you request your student to do so at this time.

If you have any questions about your eligibility for these tax benefits, please contact the IRS or your professional tax advisor or attorney.

 

Hope Tax Credit Update

As you may know, the Taxpayer Relief Act (TRA) of 1997 was adopted by Congress and the President. Among its features, it provides for two tax credits that you may be eligible to claim on your income tax return.

Hope Tax Credit

This is a tax credit and NOT a scholarship. According to IRS guidance, the Hope tax credit:

Applies to students enrolled in the first two years of postsecondary education. Thus, it is not applicable to graduate or professional school students. Applies to students enrolled at least half time for at least one session during the calendar year. Is effective for payments made during the calendar year.

Lifetime Learning Tax Credit

This is a tax credit and NOT a scholarship. According to IRS guidance, the Lifetime Learning tax credit:

Applies to students who are enrolled in one or more courses at an eligible educational institution. The course or courses must be either part of a postsecondary degree program or taken by the student to acquire or improve job skills. U.Va. is an eligible educational institution.

There are many other details surrounding the Hope and Lifetime Learing Tax Credits. We recommend that you contact your own tax professional to see if you qualify for these credits. Unfortunately, the University can not provide tax advice. You can also contact the IRS' Office of Public Liaison at 202-622-2970 or view Publication 970 on the IRS website for further information.