Hope Scholarship - Taxpayer Relief Act of 1997 Provides Tax Credits for Student Tuition:
The Hope Scholarship Credit became effective January 1, 1998, and allows up to a $1,500 maximum tax credit per year for the first two years of post secondary education for each individual student. The Lifetime Learning Credit began July 1, 1998, and allows up to a $2,000 cumulative maximum tax credit per year for all students in a taxpayer's family.
Qualified Tuition and Related Expenses
Qualified tuition and related expenses are tuition and fees required for a student to be enrolled at or attend Georgia Institute of Technology. The following are not qualified tuition and related expenses:
- Charges and fees for room, board, student insurance, health services, transportation, and similar personal, living, or family expenses.
- Amounts paid for any course or other education involving sports, games, or hobbies unless the course or other education is part of the student's degree program or is taken to acquire or improve job skills.
Specific Instructions for Form 1098-T
As an eligible educational institution Georgia Institute of Technology is required to file Form 1098-T for each student who is enrolled for any semester during the calendar year. For more information about the deduction or credit see IRS Publication 970, Tax Benefits for Education, Form 8863, Education Credits, and the Form 1040 or 1040A instructions.
Box 1. Box 1 is blank. Schools may report either payments or charges. GT reports charges (see Box 2).
Box 2. Amount billed during the calendar year for qualified tuition and fees. Per IRS regulations, health service fees, transportation fees, and student insurance are not qualified.
Box 3. Box 3 is blank. GT did not change the reporting method for the year.
Box 4. Indicates any adjustment made for a prior year for qualified tuition and related expenses that were reported on a prior year Form 1098-T. This amount may reduce any allowable education credit or deduction you may claim for the prior year. See Form 8863, 8917 or Pub. 970 for more information.
Box 5. Scholarships, grants, fellowships, and third party payments (including military payments) posted to the student's account during the calendar year. This includes awards eligible to pay tuition, general fees, outreach fees, material charges, and writing exams.
Box 6. Adjustments to the amount of scholarships or grants reported for a prior year.
Box 7. If this box is checked, the amount in Box 2 includes charges for an academic period beginning January - March of the following year.
Box 8. If this box is checked, the student was at least half-time during an academic period that began in the calendar year.
Box 9. If this box is checked, the student was a graduate student for an academic period that began in the calendar year.
International Students: 1042-S Withholding Requirements
If you are an International student receiving scholarship/fellowship funds you may be subject to tax withholding on these funds. To determine if this applies to you please refer to the Human Resource web site at ohr.gatech.edu/tax-compliance.
Foreign national students of Georgia Tech may qualify for a full or partial exemption from federal tax withholding if a tax treaty exists between the U.S .and the foreign national's country of tax residence. The GLACIER tax compliance software will assist with determining eligibility for a tax treaty benefit and provide all of the necessary paperwork. In many cases, this paperwork must be renewed on an annual basis.