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American Opportunity Credit and Life Time Learning Tax Credits

By January 31st, Orange County Community College will be mailing all credit students enrolled during the prior tax year a 1098 T. The 1098 T will provide information for tax benefits that may be available to you if you are paying education costs.

You also can print a copy of your 1098T from "My College Information (Banner Self-Service)" from MySUNYOrange.

Orange County Community College cannot offer tax advice, and taxpayers will need to refer to IRS Publication 970 or consult with a qualified tax consultant for all matters related to the tax credits. Additional information and tax forms can be obtained at the IRS web site at www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676).

Provided below is some additional information to assist in your understanding of these important tax credits:

The American Opportunity Credit provides up to $2,500 per eligible student for qualified tuition and related expenses for the first four years of post secondary education. To be eligible, students must be enrolled at least half-time (six credits) for one enrollment period pursuing an undergraduate degree or other recognized education credential and have no felony drug convictions.
The Lifetime Learning tax credit is more broadly applicable to any post secondary education to acquire or improve job skills. Up to $2,000 credit per return, is available for all years of post secondary education and for courses to acquire or improve job skills. Students do not need to be pursuing a degree or recognized educational credential.

Income limitations apply to both tax credits. Taxpayers will need to file IRS form 8863 to claim the tax credits.

1098 T Box Codes:

Please note: The IRS allows institutions to report either payments received (Box 1) or the net amount billed (Box 2). Orange County Community College reports data using the Box 2 method.

Box 2 Amounts Billed for Qualified Tuition and Related Expenses reports the total amounts billed for qualified tuition and related expenses less any related charges covered by a sponsor or a waiver.
Box 4 Adjustments Made for a Prior Year is the amount of qualified tuition and related expenses billed to a student's account for a prior tax year including any net decreases for a prior tax year.
Box 5 Scholarships and grants- is the amount of non-loan financial aid transmitted to the student's account for the current tax year including any net increases for a prior year.
Box 6 Adjustments to Scholarships and Grants for a Prior Year is the net decrease to non-loan financial aid transmitted to a student's account for a prior tax year.
Box 7 "Checkbox" for Amounts for an Academic Period Beginning in January through March 31 if invoices selected for Box 2 are for terms beginning during the first three months of the next tax year.
Box 8 "Check Box" if at Least a Half-time student (6 credits) in any enrollment period during the current tax year.