Comparing financial aid award letters from different schools can be confusing. Although there is a standard set of information that should be included– total Cost of Attendance, gift aid offered, loans and work study as applicable– each school has its own format for the letter including where certain elements are listed and whether the award lists your EFC so you…
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Once upon a time, the American Opportunity Tax Credit was a pretty simple proposition: Families could get a $2,500 annual tax credit for $4,000 of out-of-pocket college tuition expenses for their dependent student, as long as their income was below the IRS threshold for the credit. However, tax law changes over the past few years have created some opportunities for creative claiming strategies, opening the tax credit up to a larger population.
Two pieces of legislation that impact college were approved towards the end of 2019. Each has some components that may be of interest.
Currently two tax credits exist to help defray higher education expenses, the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit. Each is slightly different but for most families, the AOTC is the most beneficial. The maximum annual AOTC credit is $2,500 per student. Eligibility is limited to undergraduates who are enrolled at least half time for at least…
Form 1098-T is a tuition statement that colleges and universities are required to provide. The 1098-T shows “payments received for qualified tuition and related expenses” and scholarships received, provided they either came from the college or were disbursed directly to the college. Form 1098-T is used for two purposes: To verify tuition expenses for taxpayers claiming the AOTC or LLC….