IRS Tax Credit FAQs

What is the Hope Tax Credit?
The Hope Tax Credit allows for a federal income tax credit of up to $1,500 for payments made by or on behalf of students in their first two years of post-secondary (undergraduate) education. The student must also be in a degree granting program and attending at least half time. In most instances, a nonresident alien does not qualify for the credit.

  • The Hope Tax Credit allows for a 100 percent tax credit for the first $1,000. of payments made for qualified educational expenses and a 50 percent credit for the next $1,000
  • The Hope Tax Credit may be taken for all qualifying students who are claimed as dependents. The student may claim the credit if they are not a dependent on another person's tax return.
  • Please visit the IRS website for more information on the Hope Tax Credit and Lifetime Learning Credit.

Income requirements:

  • Individuals with adjusted gross income (AGI) up to $40,000, or up to $80,000 for joint filers
  • Reduced tax credit is available for individuals with AGI between $40,000 and $50,000 and joint filers with AGI between $80,000 and $100,000

Qualifying/Eligible expenses:

  • Qualifying or eligible expenses are defined by law as tuition and fees required for enrollment or attendance at an eligible institution. Student activity fees, athletic fees, insurance expenses, expenses unrelated to an individual's academic course of study and books, etc., do not qualify

Qualified payments:

  • Payments made by or on behalf of the student - including loan proceeds used to cover qualified education expenses - will be considered  payments made by the taxpayer.
  • Payments or credits made by scholarship, grants, gifts or any other tax-free educational benefits received by the student are not considered payments by the taxpayer

Other considerations:

  • Married taxpayers must file a joint return to be eligible for the tax credit
  • If eligible, you may take the Hope Tax Credit and the Lifetime Learning credit in the same tax year as long as it is not for the same student and the family does not exceed the lifetime learning maximum.

More information regarding the Hope Tax Credit is available at the IRS website. Remember to consult a tax professional to determine if you qualify for the credit.

What is the Lifetime Learning Tax Credit?

The Lifetime Learning Tax Credit assists families beyond the second year of college by providing a per year tax credit of up to 20 percent of the first $5,000 of payments made for post secondary education expenses. A maximum credit of $1,000. is allowed. The student must be enrolled in at least one course during the tax year and in most instances a nonresident alien does not qualify for the credit.

Income requirements:

  • Individuals with adjusted gross income (AGI) up to $40,000. or up to $80,000. for joint filers
  • Reduced tax credit available for individuals with AGI between $40,000. and $50,000. and joint filers with AGI between $80,000. and $100,000.

Qualifying/Eligible expenses

  • Qualifying or eligible expenses are defined by law as tuition and fees required for enrollment or attendance at an eligible institution. Student activity fees, athletic fees, insurance expenses, expenses unrelated to an individual's academic course of study and books, etc., do not qualify.

Qualified payments:

  • Payments made by or on behalf of the student - including loan proceeds used to cover qualified education expenses - will be considered as payments made by the taxpayer
  • Payments or credits made by scholarship, grants, gifts or any other tax-free educational benefit received by the student are not considered payments by the taxpayer

Other considerations:

  • Married taxpayers must file a joint return to be eligible for the tax credit
  • The student may take the credit if they are not claimed as a dependent by another taxpayer
  • If eligible, you may take the Hope Tax Credit and the Lifetime Learning credit in the same tax year as long as it is not for the same student and the family does not exceed the Lifetime Learning maximum.

More information regarding the Lifetime Learning Credit is available on the IRS website. Remember to consult a tax professional to determine if you qualify for the credit.

Who will receive the IRS Form 1098T?
For the tax reporting year 2013, all U.S. Molloy College students who were officially registered and taking courses for academic credit in at least one of the following semesters:

  • Summer 2013
  • Fall 2013
  • Spring 2013

When will the IRS Form 1098T be mailed and what address will it be mailed to?
IRS Form 1098T will be mailed no later than January 31 following the tax year to be reported, to the student's permanent address.

Who will mail the IRS Form 1098T and answer students' questions?
The Bursar's Office at Molloy College will mail the IRS Form 1098T to our students.

Who will answer tax related questions?
Students should refer all tax-related questions to their own tax counsel. You may get additional information from IRS Publication 970, Tax Benefits for Higher Education or visit the Internal Revenue Service web site.  

How can a student get a duplicate 1098T?
Students can access and print their 1098-T form online. You will need the ATS Access ID number, your username and password. This information was previously sent to your Molloy email from the Office of The Bursar.

Contact Us

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Office of the Bursar
1000 Hempstead Avenue Wilbur Arts Center, Room W225 Rockville Centre, New York 11571-5002

516.323.4100

officeofthebursar@molloy.edu