1098-T Information

Lifetime Learning and American Opportunity Tax Credit Information

The Taxpayer Relief Act of 1997 (“Act”) provides taxpayers with higher education tax incentives, including two new nonrefundable tax credits for payments made for qualified tuition and related expenses (not including activities fees, books, or room and board) for post-secondary education. Fees paid for tuition after the first two years of post-secondary education are eligible for the Lifetime Learning Credit and/or the American Opportunity Credit. For the Lifetime Learning Credit, a taxpayer may claim up to $2,000 per return. For the American Opportunity Credit, a taxpayer may claim up to $2,500 per student claimed as a taxpayer’s dependent. A full explanation of the these tax benefits can be found in the IRS Publication 970, Tax Benefits for Higher Education.

The act imposes a reporting obligation on all educational organizations that receive qualified tuition and related expense payments. The University of Maine System will mail the IRS Form 1098-T by February 1 of the next calendar year, reflecting the following information:

  • Name, address, and Social Security Number of the student
  • Name, address, contact name, telephone number and employer ID of the College
  • Indication whether the student attended more or less than half time during the year
  • Indication whether the student was enrolled exclusively in graduate level courses

The University of Maine System will also provide the above information to the IRS by March 31 of the next calendar year.

For additional information about your 1098-T, please contact the University of Maine System at 207.581.5488.

Additional information about your tuition and fee payments may be obtained by calling the Bursar’s Office at 207.581.1521.

Whether a taxpayer may take advantage of these benefits depends on the taxpayer’s individual facts and circumstances.

The preceding summary is for informational use only and should not be relied upon for tax planning purposes. Neither ECSI nor the University of Maine System can provide legal or tax advice on this matter. Again, please refer to IRS Publication 970 or consult with your own personal tax adviser.