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1098-T Information

In January of each year, The University of Nebraska mails the IRS Form 1098-T to all students who had qualified tuition and other related educational expenses billed to them during the previous calendar year. This form is informational only. It serves to alert students that they may be eligible for federal income tax education credits (Hope and Lifetime Learning) and should not be considered as tax opinion or advice.

While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax credit. It is up to each taxpayer to determine eligibility for the credits and how to calculate them. A summary of all educational expenses (both qualified and non-qualified) for the calendar year and a printable copy of the 1098-T are available on WAM/WAMS.

Although The University of Nebraska provides the information that appears on your 1098-T form, our staff is not qualified to answer any tax-related questions or give tax advice. You are encouraged to contact your individual tax preparer or the Internal Revenue Service. Instructions to find out if you are eligible to take the Education credits are available on IRS Form 8863 or IRS Publication 970. (Links to these may be found via the NASFAA.org website link below.)

Special Rules for Students in Midwestern Disaster Areas

Lancaster County, Nebraska was declared a disaster area on May 22, 2008. Therefore, students attending the University of Nebraska – Lincoln may be eligible for additional Educational Credits for the 2008 Tax year.

The Hope credit for students in Midwestern disaster areas is 100% of the first $2,400 of qualified education expenses and 50% of the next $2,400 of qualified education expenses for a maximum credit of $3,600 per student. The Lifetime Learning credit rate for students in Midwestern disaster areas is increased to 40% of qualified expenses paid, with a maximum lifetime learning credit allowed on your return of $4,000.00.

The definition of qualified education expenses is expanded for students in Midwestern disaster areas. In addition to tuition and fees required for enrollment or attendance at an eligible educational institution, qualified education expenses for students in Midwestern disaster areas include the following:

1. Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution.

2. For a special needs student, expenses that are necessary for that person’s enrollment or attendance at an eligible educational institution.

3. For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts.
a. The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. (see chart below)
b. The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. (These expenses are summarized in WAM/WAMS.)

Additional information on the Hope and Lifetime Learning Credits is available on the National Association Of Financial Aid Administrators website:

http://www.nasfaa.org/redesign/taxbenefitsguide.html