Southern Oregon University
Education Tax Credits
(Taxpayer Relief Act of 1997)

Information on Education Tax Credits
In an effort to make college more affordable, Congress passed the Taxpayer Relief Act of 1997 (TRA97) comprised of the Hope Scholarship Tax Credit and the Lifetime Learning Tax Credit. Both of these credits are limited by taxpayer income and are nonrefundable; they reduce tax liability only.  If students are eligible, they will need the information reported on Form 1098-T to help compute these credits.  Southern Oregon University mails this form to all students by January 31 of the following calendar year. This information is also available on SISWeb on January 1 after the end of the tax year.

Hope Scholarship Tax Credit
The Hope Scholarship Credit provides a tax credit to taxpayers who pay qualified tuition and related expenses for attending an eligible institution for at least one term on at least a half-time basis. This credit is designed to offset tuition costs incurred during the first two years of college. The individual tax filer can use it for only two years for each eligible student. This credit is computed on qualified tuition and related expenses paid during the calendar year minus certain grants, scholarships, and other tax-free educational assistance. The maximum tax credit is $1,500 per student, which is then indexed for inflation. If you qualify, this credit can be claimed on your federal tax return.

Lifetime Learning Tax Credit
Like the Hope Scholarship Credit, the Lifetime Learning Credit provides a tax credit to taxpayers who pay qualified tuition and related expenses to an eligible institution. It differs from the Hope Scholarship: the student is not required to attend at least half time. A family may claim a credit of up to $2,000 per tax year. The Lifetime Learning tax credit is available for tuition and related expenses paid during the calendar year minus certain grants, scholarships, and other tax-free educational assistance.

Are you eligible for a tax credit?
You may be eligible for a tax credit for tuition paid, minus certain financial aid received. IRS regulations limit eligibility based on hours completed, hours enrolled, and income of the taxpayer. Be sure to read "Instructions for Student" on your hard-copy Form 1098-T.  Contact your tax preparer, call the IRS (800-829-1040), and/or consult IRS Publication 970, "Tax Benefits for Education."

If you decide to claim education tax credits, you will need to complete IRS Form 8863.

Form 1098-T and your SOU account
The information reported on Form 1098-T refers to all activity that posted onto your SOU account in the calendar year indicated on the form.  Note: calendar year activity will include all charges and payments for the winter, spring, summer and fall terms plus any amount billed at the end of the calendar year (i.e. in December) for the following winter term.

SOU reports the "Amounts billed for qualified tuition and related expenses" in Box 2.  We are required to report information for "Adjustments made for a prior year" in Box 3 and "Adjustments to scholarships or grants for a prior year" in Box 5. If your Form 1098-T displays figures in Boxes 3 and/or 5, be sure to read the information about these boxes on the back of the Form 1098-T.

Southern Oregon University mails this form to all students no later than January 31st of the following calendar year.

Online access
You can view a representation of this form and get additional detail about your SOU account online starting on January 1 after the end of the tax year by: (1) Logging on to SISWeb,  (2) Click Student & Financial Aid, Student Account, and Tax Notification, (3) Enter the tax year,  (4) Click the Submit button.

If you have questions about the information provided on the Form 1098-T contact the Education Tax Credits Information Officer.
Southern Oregon University
Enrollment Services Center, Britt 230
Phone 541-552-8156 or 541-552-6598
Fax 541-552-6614
E-mail esc@sou.edu

Social Security Number
SOU is required to provide the IRS the name and social security number of all enrolled students who take a class for credit. If the social security number is incorrect, you will need to complete IRS Form W-9S and submit the form to Southern Oregon University, Enrollment Services Office, Britt 230, 1250 Siskiyou Blvd., Ashland, OR 97520.

Tax advice
SOU cannot provide tax advice!

Be sure to read "Instructions for Student" on your hard-copy of Form 1098-T.

If you have tax-related questions:

• contact your tax preparer
• call the IRS (800-829-1040)
• and/or consult IRS Publication 970, "Tax Benefits for Education."

IRS forms
If you decide to claim education tax credits, you will need IRS Form 8863.
If your social security number is incorrect on Form 1098-T, you need IRS Form W-9S.

Back to Student Financial Information

Back to Business Services Home

This page is maintained by the Business Services Technology Team. If you have questions or comments about this page, contact BusSvcs_Web@sou.edu.  Copyright 2007, Southern Oregon University