The American Opportunity and Lifetime Learning Tax Credits

2018 1098-T forms were posted to GullNet Tuesday, January 18, 2019, for all students who were enrolled at Salisbury University in 2018. For students who did not opt to receive the form electronically, forms were printed and mailed to the student's billing address the week of January 22, 2019. For more information on how to access or obtain a form, please visit Obtaining a 1098-T Tuition Statement.

Paper forms are being printed and mailed to all students who graduated in 2018.

When you receive your tax document in 2019 for tax year 2018, it will look slightly different than it has in prior years. Congress and the IRS eliminated the option for colleges and universities to report the "amounts billed" on form 1098-T. Colleges and universities must now report the "amounts paid" for qualified tuition and related expenses. This change went into effect for the 2018 tax year. Based on a report compiled by the US Inspector General for Tax Administration, it was determined there were a large number of errors as it relates to educational tax credits. The majority of these errors were caused by confusion regarding Box 2 (amounts billed) reporting. This change eliminates this confusion and the potential for inaccuracies on 1098-T forms going forward. This means that you will no longer see any amounts in Box 2 (Amounts billed for qualified tuition and related expenses) on your 1098-T form. You will, however, see an amount in Box 1 (Payments received for qualified tuition and related expenses). Only payments received in 2018 are reported on the 2018 1098-T tuition statement. If you have further questions about these changes or other specific tax-related questions, please contact your tax professional.

Purpose

The American Opportunity and Life Time Learning tax credits were created by the Taxpayer Relief Act of 1997 to help offset the costs of higher education. To claim the credit, a taxpayer and student must meet eligibility requirements, and Form 8863 must be filed with the taxpayer's federal income tax return. The American Opportunity Credit was added to the Taxpayer Relief Act in 2011, and for most students, replaces the Hope Scholarship tax credit.

IRS Form 1098-T

At the end of each calendar year, the University prints and mails to each student the IRS form 1098-T. This is the form used to provide tax credit-related information to the student. The same information is sent to the IRS via magnetic media.

For more information on the amounts reported in these boxes, please visit the Amounts Reported on Form 1098-T. Students may obtain detailed account information used to compute the amounts reported in the 1098-T boxes via their GullNet account.

Salisbury University is providing this information as a service to its students, but please keep in mind it is not an authority on taxation. Therefore, the University is not responsible for any misrepresentation of the IRS regulations. You should consult a tax advisor to determine if you qualify for the credit or for any other related questions.