
Filer's name, address and telephone number Demo University 123 MY STREET NOPLACE PA 15123 Tax Man 412 - 788 - 3900 webmaster@ecsi.net		1. Qualified tuition an related expense	2001 Form: 1098-T	Tuition Payments Statement
		2. Reimbursements or refunds
Filer's Federal Identification No. 00-9999999	Student's Social Security Number 111-11-1111	3. Scholarships or grants		Copy B For Student This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for student loan interest.
Student's name and address A. SAM STUDENT 1234 MAIN ST MOCKINGBIRD HGHTS WY 11223-4455
Account Number (optional)		3. At least half-time student (if checked)	4. Graduate student (if checked)

(Keep for your records)

The Taxpayer Relief Act of 1997 (TRA97) established two new education tax credits: the Hope Credit for students who enrolled in one of the first two years of postsecondary education and are carrying at least a half-time workload while pursuing an undergraduate degree, certificate, or other recognized credential; and the Lifetime Learning Credit for students who take one or more classes from a college or university to pursue an undergraduate degree, certificate, other recognized credential, or to acquire or improve job skills.

If the student listed is claimed as a dependent for federal income tax purposes, the student cannot claim either credit; however, the taxpayer who claims the student as a dependent may be eligible.

To claim either credit, use IRS Form 8863, Education Credits.

Amount of Hope Credit: 100% of the first $1,000 in qualified education expenses paid, and 50% of the next $1,000. The maximum amount that can be claimed for qualified education expenses paid on or after January 1, 2001 through and including December 31, 2001 is $1,500, or the amount of tax liability, whichever is less.

Amount of Lifetime Learning Credit: 20% of the first $5,000 paid in qualified education expenses. The maximum amount that can be claimed for qualified education expenses paid on or after January 1, 2001 through and including December 31, 2001 is $1,000, or the amount of tax liability, whichever is less.

What is IRS Form 1098-T?

IRS Form 1098-T -- Beginning with the 1998 calendar year, a college or university that received qualified tuition and related expenses on your behalf is required to file Form 1098-T, with the Internal Revenue Service (IRS). A Form 1098-T must be furnished to you. The information being reported to the IRS verifies your enrollment with regard to certain eligibility criteria for the Hope Credit and the Lifetime Learning Credit. However, the enrollment information by itself does not establish eligibility for either credit.

For more information see the IRS Notice 97-60 or IRS Form 8863.

These areas of the form are reserved for displaying the totals of qualified education expenses (Boxes 1, 2 & 3). These boxes are not required in tax year 2001. The form has been revised for tax year 2001.

Boxes 1, 2 and 3. These boxes are not applicable for tax year 2001.

Box 4. Shows whether your college or university considers you to have carried at least one-half the normal full-time workload for your course of study, for any academic term, during the 2001 calendar year.

Box 5. Shows whether your college or university considers you to have been enrolled exclusively in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential during the 2001 calendar year.

Consult a tax advisor or the IRS for more information.

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More information about 1098-E/T is available in our document Student Loan Tax Incentives.

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