Frequently Asked Questions

Hope and Lifetime Learning Credit

• Who may claim the Hope or Lifetime Learning Credit?

Independent students or taxpayers who claim the student as a dependent.

• What is the maximum dollar amount that I can claim for a tax credit?

The Hope tax credit is $1,100 plus half of the next $1,100, not to exceed $1,650 total. The Lifetime Learning Credit equals 20% of the first $10,000 paid for educational expenses, with a limit of $2,000. These are subject to income limitations and are not generally available to Non-Resident Aliens (NRA).

• Should I be using the Hope Credit or the Lifetime Learning Credit?

If you are a freshman or sophomore, use the Hope credit, otherwise use the Lifetime Learning Credit (income limitations considered). If you changed status during the year, ask a tax advisor. You cannot use both in the same year.

• Who is eligible for the Hope Credit?

Students who who were enrolled in a degree program, were at least a half-time student during one academic year and have not been convicted of certain felonies.

• Who can claim the Lifetime Learning Credit?

Students who are at least half time, not a freshman of sophomore and are taking courses that help acquire or improve job skills. This includes graduate and non-credit courses.

• What expenses are eligible for the Hope or Lifetime Learning credit?

Tuition and other required fees to enroll or attend an accredited educational institution. However, these expenses must be reduced by any grants, scholarships, exemptions, etc. Books, lodging and other expenses are excluded unless required and paid directly to the University.

• Do qualified expenses need to be adjusted for proceeds from student loans?

No, student loans are considered your funds, therefore are not deducted from tuition costs.

• Why can't the University give more tax information or advice?

We are not trained or qualified individual tax experts and are not able to review your final and full tax return. Therefore we are not able to evaluate all of the taxpayer's individual circumstances.

• For what time period are courses eligible for the Educational Tax Credits?

Hope credits started in January, 1998. The Lifetime Learning Credit started July 1, 1998.

• May I get a 1098T for previous years?

We can print a copy of the information and mail it to you or you can come to Schmitz Hall, room 129 to pick it up.

• When will the 1098T be available to me?

The forms will be mailed to you by the end of January. If you are currently enrolled, it will be mailed to your billing address. If you are not enrolled, it will be sent to your permanent address. Prior to receiving the 1098T, you may review your account on MyUW. You may also print a copy of your 1098T information from MyUW Personal Services.

• How can I receive information on my child's qualified expenses and grants or aid?

Because this information is part of the student's private educational records, federal privacy laws protect these accounts. We are unable to disclose information to anyone without written consent by the student. If a student wishes us to release this information, they will need to go to MyUW and complete the Information Release Authorization form available from the Personal Services - Tuition Statement.

• How can I get a corrected 1098T?

If you need corrections to your 1098T, please contact Student Fiscal Services at (206) 221-2609 or send email to taxquest@u.washington.edu and include information as to what needs to be corrected and a way to contact you for further information. You may request a corrected 1098T form be mailed to you or you may print the information from MyUW Personal Services.

• I paid my tuition at UW Extension. Why is the payment information listed under the grant/aid section?

If the person who paid the bill had a different name than the official name recorded in the database, then it is listed under grant/aid. Please disregard that information.

• As an Extension student, why does the 1098T statement say no on either being a full-time student or being a graduate or undergraduate?

UW Extension does not record that information in their database. When the files are merged with the UW Student Database which does record that information, it defaults to no.

• What if the grant/aid is more than the tuition expenses?

You will likely have to declare it as income. Please consult a tax specialist.

• What is this new Tuition and Fees Deduction? In what case would I use this?

This deduction may be beneficial to taxpayers who cannot take the Hope or Lifetime Learning credit because their income is too high. This deduction is taken as an adjustment to income, not as a tax liability. This means that you may claim this deduction even if you do not itemize deductions on Schedule A, form 1040. This will only be available for four years, 2002 through 2005. This information is stated in IRS publication 970, page 24.

• How do I find out how much interest I paid on a student loan?

Call your loan servicer and request form 1098E.

International Students

• As an international student am I eligible for the Hope or Lifetime Learning credit?

No. If you are classified as a nonresident alien in the Student Database, you will not receive a 1098T form. If you are on a visa status, you do not qualify for either tax credit. There are however, some students that can file as a resident alien. Refer to IRS Publication 519 for details.

• Why did I receive a 1098T form that only lists classes that I took through Educational Outreach and not the regular academic courses?

Educational Outreach does not enter into their database whether a student is a resident, nonresident or a foreign student, so forms are sent to all of their students regardless of status.

• Why didn't I receive a 1042S form from payroll this year?

According the the new IRS requirements, the UW does not have to report any tuition exemptions or waivers for international students. Only nonresident students who have received funds above what they are allowed will receive a 1042S and will be taxed accordingly.

• What if my country has a treaty with the U.S.?

You must fill out a W8-BEN form. Your department or Payroll office has these forms if you are not able to download and print it. Return a copy of the form to the Payroll office and one to Student Fiscal Services.

• What if my country does not have a treaty?

Then you must pay U.S. taxes if you have received U.S. funds that exceed the amount of the tuition expenses.