Students and Parents:
During the last week of January, the Business Office of Kansas City Kansas Community College will send you a 1098T form as required by the Taxpayer Relief Act of 1997 (TRA97). The following information should answer your questions concerning the 1098T.
What is the Taxpayer Relief Act?
The Taxpayer Relief Act of 1997 was designed to help families meet the cost of post-secondary education by allowing students and/or parents tax credits against their federal income taxes. Taxpayers can claim one or, in some cases, two tax credits for expenses they pay for post-secondary education for themselves and their dependant children. These tax credits can directly reduce the amount of federal income tax for returns filed in 2000 or later. The Hope Scholarship Credit is available on a per-student basis for the first two years of postsecondary education, while the Lifetime Learning Credit applies on a tax-return basis and covers a broader time frame and range of educational courses. Education expenses paid for with tax-free grants, scholarships, and employer-education assistance are not eligible for these tax credits. To learn more about the tax credits, the US Department of Education summarizes the legislation in the Families Guide to the 1997 Tax Cuts for Education. For further information and guidance, review on-line the IRS Publication 970 - Tax Benefits for Higher Education (PDF file; Adobe Acrobat Reader required) or order additional forms and publications from the IRS at 1-800-TAX-FORM.
What should you do with the 1098T?
Review the "Instructions for Student" at the bottom of the 1098T. Then, consult with your tax advisor. If necessary, the Business Office can furnish you with a detailed statement of your student account which should assist you and/or your tax consultant in preparing you income tax return.
If you have additional questions about The Taxpayer Relief Act or your 1098T form, contact the IRS at 1-800-829-1040 or visit the IRS website. KCKCC cannot advise you with your income tax preparation.