How do I Qualify for the IRS Tuition Reimbursement Program?

The American Opportunity Tax Credit provides more students and families with better chances at qualifying for educational credits. The Hope Credit and the Lifetime Learning Credit are still available. Plus you can choose to take tuition and fee deductions. Independent students can take these credits or a dependent student's parents can use these credits. Each individual student in a household can earn tax credits. But you will need to be familiar with the different credits, deductions and tax forms.

Things You'll Need

  • IRS Form 1098-T Tuition Statement
  • IRS Form 1040 or 1040A
  • IRS Form 8863 or 8917
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Instructions

    • 1

      Obtain your tax statements from your school administration office on Internal Revenue Service Form 1098-T. Financial aid offices may post them on your personal account, in the same way your financial aid awards and distributions are made to you.

    • 2

      Follow up with your financial aid or bursar's office prior to filing your taxes. You need the Form 1098-T tuition statement in your possession by Feb. 1 to file your taxes or help your parents file their taxes.

    • 3

      Go to the IRS website and read the requirements to qualify for the American Opportunity Tax Credit, the Hope Credit and the Lifetime Learning Credit.

    • 4

      Collect all of tax statements and your receipts. List all of your educational expenses, starting with tuition, books and school supplies.

    • 5

      Recalculate your tuition expenses into two categories: actual tuition paid and tuition offset by grants. Actual tuition includes tuition that was paid by credit card, student loans, parent loans or non-specific scholarship awards. Tuition offset by grants includes federal, state or local awards that specifically reduced your tuition by an exact percentage or actual monetary sum.

    • 6

      Add your actual tuition paid, book expenses and allowable school supplies together. This is the figure you can use on your tax return to earn educational tax credits.

    • 7

      Print available worksheets to help you calculate your Hope Credit, Lifelong Learning Credit or other tuition and fee deductions. See IRS Forms 8863 and 8917.

    • 8

      Complete a tax form 1040 or 1040A and Form 8863 for Education Credits (American Opportunity, Hope and Lifetime Learning credits).

    • 9

      Compare tuition and fee deduction options on Form 8917 to credits from Form 8863. See which is more beneficial. For each student, you can claim the education credits or tuition and fee deductions.

    • 10

      Submit a Form 8863 for each educational credit or Form 8917 for each tuition and fee deduction you take per student. Attach it to your 1040A or 1040 form and mail it in, if required.

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