Illinois State University
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Tax Credit

The American Opportunity Tax Credit was originally named the Hope Scholarship Credit. Since January 1, 1998, a maximum amount of $1,500 has been granted to the qualified student per year for the first two years of the student’s post-secondary education in the form of the Hope Scholarship Credit.

The Hope Credit was transformed into The American Opportunity Tax Credit in 2009 and 2010. The maximum amount of this tax credit rose to $2,500 per year for each individual student, and extended to cover the first four years of the student’s post-secondary education.

The Lifetime Learning Credit has been granted to all students that belong to taxpaying families starting from July 1, 1998. A maximum amount of $2,000 cumulative tax credit has been to each student per year.

Qualified Expenses

Previously, qualified expenses were the tuition and general fees a student pays to enroll or attend classes at Illinois State University(student health service and student  insurance fees are not included). As of 2009 and 2010, the definition of "qualified tuition and related expenses" has been expanded to include the fees of books, equipment and supplies that a course requires. Please consult the Internal Revenue Service publications for more details.

The following expenses are NOT considered as qualified expenses:

  • Fees and charges for housing, student insurance, student health services, transportation, or other personal, living, or family expenses.
  • Fees and charges for any course or educational activity involving sports, games, or hobbies unless the course or educational activity is part of the student's degree program or helps the student acquire or enhance career-related professional skills.

Instructions for Form 1098-T

As an eligible educational institution, Illinois State University is required to file Form 1098-T for each student who is enrolled in either semester of each tax year. Please consult  IRS Publication 970 (Tax Benefits for Education),  Form 8863 (Education Credits) and the Form 1040 or 1040A for more details.

Instructions for Form 1098-T
Box Number Information Reported in Box
Box 1 N/A
Box 2 Amount billed during the calendar year for qualified tuition and related expenses less health service fees and student insurance charges.
Box 3 N/A
Box 4 Adjustments in charges from a prior year for qualified tuition and related expenses made in the currently reported calendar year that were previously reported on a 1098-T.
Box 5 Scholarships or grants processed during the calendar year for the payment of the student's cost of attendance.
Box 6 Adjustments to the amount of scholarships and grants that were previously reported on a 1098-T.
Box 7 If this box is checked, the amount in box 2 includes amounts for a future academic period beginning January - March of the following year. This would include any spring semester charges that were included on the December billing statement.
Box 8 If this box is checked, the student was at least half-time during any academic period that began in the reported year.
Box 9 If this box is checked, the student was a Graduate student during spring, summer, or fall semesters of the reported year.
Box 10 N/A

Please visit the Internal Revenue Service web site or call (800) TAX-1040 or (800) TAX-FORM for more information. You should discuss any potential tax implications with your tax advisor.

2013-02-01T15:41:04.462-06:00 2013
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