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- Tax benefits: Federal tax credit programs and tuition deductions
- Tax documents: 1098-T Tuition Payments Statement and 1098-E Student Loan Interest Statement
There are several tax benefits that assist students and families in the financing of a college education. You may be eligible for one of two federal tax credit programs for tuition and fees. Alternately, you may be eligible for a tax deduction.
These tax credits are based enrollment, adjusted gross income, tuition paid and grants received.
- The American Opportunity Credit is available for first four years of higher education. It allows taxpayers to claim a tax credit of up to $2,500 per eligible student for each year.
- The Lifetime Learning Credit is available for all years of higher education (undergraduate and graduate students). The Lifetime Learning Credit allows taxpayers up to a maximum $2,000 tax credit per return.
More information about these tax credits can also be found on the IRS website's Education Credit page.
- Eligible taxpayers can deduct qualified, limited educational expenses from adjusted gross income. The tuition deduction allows for a reduction of income subject to tax by up to $4,000.
- This deduction is subject to income restrictions and eligibility requirements, and may not be claimed in conjunction with the American Opportunity or Lifetime Learning tax credits.
By January 31 of each year, the following two tax statements for the previous year are mailed to students:
1098-T Tuition Payments Statement is sent to each student who paid qualified tuition and related expenses during the previous year.
- It includes financial information, such as tuition charges, scholarships received and payments made, which you may need for either education credits or a tuition deduction on your federal tax returns.
- Questions about the amounts reported on the 1098-T?
Contact Student Accounts at 847-491-5224 or firstname.lastname@example.org.
- Questions about eligibility?
Please review the IRS flyer, Why Form 1098T is Important to You, to become more familiar with the uses of the 1098T form. Contact your tax preparer or financial adviser with questions concerning your eligibility for tuition tax credits or tax deductions. You may also review the IRS web site or call their toll-free number (1-800-829-1040) for additional information.
- View or reprint my 1098-T tuition payments statement?
Current student: CAESAR> Home> More Student Financials> 1098-T
Guest: CAESAR> Home> 1098-T
Former student: Tax forms are placed in the federal postal system by January 31. Contact Student Accounts at 847-491-5224 or email@example.com.
1098-E Student Loan Interest Statement is sent to each student who paid interest on student loans held by Northwestern University during the previous year.
- You may be eligible to take a deduction on your federal income tax return for student loan interest you paid during the year. You do not have to itemize deductions to claim the student loan interest deduction. However, there are limits to how much interest you may deduct as well as limits on qualifying income levels.
- Questions about the amount of interest paid reported on the 1098-E?
Contact the Student Loan Office at 847-491-3125 or firstname.lastname@example.org.
- Questions about eligibility?
Please contact your tax preparer or financial advisor with questions concerning your eligibility for student loan interest deductions on your federal income tax return. You may also review the IRS web site or call their toll-free number (1-800-829-1040) for additional information.