Educational Credits – Items Needed
Educational Credits can be confusing. Here is a list to help you gather the information you will need to bring to figure the credit properly:
Students need a 1098T from each school attended. Printing this out from the school’s website is usually best because it often contains more details.
This can also sometimes be printed from 1098t.com for just the form.
Also, it is best to bring a print out of the school account statements showing charges (tuition, fees, room & board, other expenses) and credits (scholarships, grants, payments, adjustments, etc.) for each term/semester attended (Spring, Summer, Fall (current tax year) and Spring (next year)) because sometimes this is included and/or has adjustments needed to calculate the credit properly. This is usually available on the school’s website. Even if you do not receive a 1098T, this statement is still necessary.
Also, the amount spent for book and supplies (calculator, specific software, art supplies, etc.) required for classes during the current tax year are needed. It is best to keep receipts.
Out-of-pocket expenses include those paid for with a student loan or paid by another person for the student, such as by a parent or grandparent.
Note if any of the scholarships or grants received are for a specified use- ex. books, room & board, etc. Scholarships received/used for room & board are taxable to the student.
It is also important to know what years the American Opportunity Credit or Hope Credit have previously been claimed for the student.
Also, bring information for any student loan interest paid or distributions received from an Educational Savings Plan.