Financial Aid
Education Tax Credits
Within this page, you will find information about the following topics:Hope Tax Credit
This credit is for students who are enrolled in one of the first two years of post secondary education and are carrying at least a half-time workload while pursuing an undergraduate degree. Maximum amount of credit per student is $1,650 for qualified educational expenses. 100 percent of the first $1,100 and 50 percent of the next $1,100.
You are eligible for the Hope Credit for a student if all of these items apply.
1. As of the beginning of the calendar year, the student had not completed the first 2 years of post secondary education – this is generally, the freshman and sophomore years. For this purpose, do not include academic credit awarded solely because of the student’s performance on proficiency examinations.
2. The student was enrolled in 2008 in a program that leads to a degree, certificate, or other recognized educational credential.
3. The student was taking at least half-time the normal full-time workload for his/her course of study for at least one academic period beginning in the calendar year.
4. The student has not been convicted of a felony for possessing or distributing a controlled substance.
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Lifetime Learning Tax Credit
For students who take one or more classes from a college or university to pursue an undergraduate or graduate degree to acquire or improve job skills. The maximum amount for the Lifetime Learning Credit is $2,000 per return,for qualified educational expenses. This credit is available for an unlimited number of years.
The TRA ‘97 added Section 6050S to the Code, which requires eligible educational institutions to file information returns (IRS Form 1098-T) to assist the taxpayer and the IRS in determining the education credit that taxpayers may claim under Section 25A.
A college or university that received qualified tuition and related expenses is required to file the 1098-T with the IRS. A copy of the form is furnished to the student, if eligible.
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1098-T
West Virginia University will mail the Form 1098-T to students/parents with qualified tuition and related expenses in the calendar year. This form will be mailed by January 31, of the following year. Should students/parents have questions concerning the 1098-T form, or general questions regarding the Hope and Lifetime Learning tax credits, they are encouraged to click here: http://1098t.wvu.edu.
Students can elect to have their 1098-T Form delivered electronically at the 1098-T website. There is a link to “Why use this System” in the left column of http://1098t.wvu.edu that provides useful information about the 1098-T program at WVU along with other links in the left column.
If you do not activate your account, a hardcopy 1098-T will be sent to you by January 31st.
Watch a 1098-T Presentation with Audio
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Student Loan Interest Deduction
You may be able to deduct interest you pay on a qualified student loan if your student loan is canceled, you may not have to include any amount in income.
The deduction is claimed as an adjustment to income: you do not need to itemize your deductions on Schedule A Form 1040.
You can claim the deduction if all of the following apply:
1. You paid interest on a qualified student loan in tax year 2008
2. Your filing status is not married filing separately
3. Your modified adjusted gross income is less than $70,000 ($145,000 if filing jointly)
4. You and your spouse, if filing jointly, cannot be claimed as dependents on someone else’s return
A qualified student loan is a loan you took out solely to pay qualified higher education expenses. See the instructions for Form 1040 to determine if your expenses qualify.
The maximum deduction each taxpayer was permitted for 2008 was $2,500.
Eligible borrowers will receive form 1098-E from the holder(s) of their student loans. This form will report how much qualified student loan interest was paid during the previous calendar year. Borrowers may receive more than one of these if they are making payments on student loans to multiple lending institutions. WVU’s Student Loan Servicer, ECSI, will issue form 1098E for qualified interest payments on the Federal Perkins Loans, Health Profession Loans, and West Virginia Institutional Loans. Any questions on interest payments for these loans should be addressed to ECSI at (412) 788-3900.
Eligible borrowers involved with the William D. Ford Federal Direct Loan Program will also receive a separate 1098-E form from this program. Questions concerning the interest on the Direct Loans should be addressed to Direct Loan Borrower Services at 1-800-848-0979.
For 2008, the amount of the student loan interest deduction is phased out (gradually reduced) if your filing status is married filing jointly and your modified adjusted gross income (MAGI) is between $115,000 and $145,000. You cannot take the deduction if your MAGI is $145,000 or more.
For all other filing statuses, your student loan interest deduction is phased out if MAGI is between $55,000 and $70,000. You cannot take a deduction if your MAGI is $70,000 or more.
Note :For specific questions concerning the tax credits and the Student Loan Interest Deduction, or for tax guidance, taxpayers should contact the Internal Revenue Service at 1-800-829-1040, or consult with a tax adviser.
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