If you are a US resident for tax purposes, you may be eligible to claim a tax credit on your federal tax return for qualified educational expenses paid to Muskegon Community College (MCC). These benefits, called the American Opportunity (Hope) Credit and the Lifetime Learning Credit, allow taxpayers to reduce their federal income tax based upon qualified tuition and fees paid, assuming the taxpayer meets all eligibility requirements. The determination as to whether you qualify for tax credits should be made in consultation with your personal tax advisor or the Internal Revenue Service. Muskegon Community College cannot give you tax advice, tell you which amount to use, or make a determination as to whether you qualify for tax credits.
General Information about the 1098-T Form
The 1098-T form is used by eligible educational institutions to report information about their US resident students to the IRS as required by the Taxpayer Relief Act of 1997. As an eligible educational institution, MCC reports certain enrollment and identifying information regarding US resident students for which MCC has received payments of “qualified education expenses” for the corresponding tax year.
The 1098-T tax form is an annual statement provided by colleges and universities to all eligible students who pay qualified tuition and related expenses (QTRE), (including non-resident tuition fees) during the calendar year (January 1 to December 31). The 1098-T statement may be used by students or dependent students’ parents to claim the American Opportunity Tax Credit (formerly “Hope Scholarship Credit”) or Lifetime Learning Credit on their federal taxes. More information about claiming an education tax credit can be found in IRS Publication 970 at https://www.irs.gov.
Change to 1098-T Form for 2018
In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) we billed to your student account for the calendar (tax) year. As a result of federal institutional reporting requirements beginning with tax year 2018, MCC will report the amount paid towards QTRE in Box 1. This amount paid will include “out-of-pocket” payments as well as any financial aid/scholarships/third-party payments that paid for QTRE. However, the college is not required to issue a 1098-T if scholarships and grants for the year are in excess of the amount paid by the student. Box 3 will be checked to indicate this change in reporting. No amounts will be reported in Box 2 for 2018.
1098-T Electronic Consent
Muskegon Community College has partnered with Heartland ECSI, offering you the opportunity to receive your 1098-T Tuition Statement electronically. If you would like to receive your 1098-T form electronically, please give your consent by clicking the link below and following the step by step instructions. 1098-T forms will be provided by the end of January 2019. If electronic consent is not received by January 1, 2019, the 1098-T form will be mailed to the current address on file.
To sign up for electronic 1098-T notification, click here. The deadline to sign up is January 1, 2019.
Benefits of Signing Up for Electronic 1098-T Notification
- Online Delivery provides access to the 1098-T form earlier than the traditional mailing process.
- You can access your 1098-T form online, 24 hours a day, 7 days a week by logging into your ECSI Account. Please visit http://www.ecsi.net/taxinfo.html to create an account and retrieve your form.
- 1098-T availability earlier than receiving by mail. The IRS tax laws state that MCC has until January 31st to mail out 1098-T documents. Please login to your ECSI account periodically to see if your tax form is available.
- Online delivery eliminates the chance that the 1098-T will get lost, misdirected or delayed during delivery, or misplaced once the student receives it.
- Signing up for online delivery is easy and secure.
- Students can receive their 1098-T form while traveling or away from their home address.
Please visit http://www.ecsi.net/taxinfo.html for further 1098-T information and to obtain contact information for Heartland ECSI. MCC cannot provide tax advice. Please contact your tax preparer or adviser for explanation of the requirements for (and how to figure) any educational credit you may claim.