GENERAL
Q: What is the difference between a tax credit and a tax deduction?
- A tax credit is subtracted from the amount of taxes that the taxpayer owes.
A tax deduction is subtracted from your taxable income prior to determining the
amount of taxes owed.
Q: How do students or parents without Internet access obtain information?
- Inform them that informational brochures, booklets, and forms can be obtained
from the IRS. Tax forms: (800) 829-3676; Questions: (800) 829-1040
Q: How do I claim these tax credits?
- You must complete IRS Form 8863. Please refer to the
IRS Publication
970 for further details.
Q: Who is eligible to claim the Hope Scholarship Credit?
- A student paying qualified tuition and related expenses at an eligible
post-secondary educational institution may claim the credit, provided the student
meets certain eligibility requirements. In general, a student is eligible for the
Hope Scholarship Credit if the student is enrolled at least half-time in a
degree-seeking program for at least one academic period (e.g., semester or summer
at UH) during the 2002 calendar year. The credit is applicable for the first two
years of post-secondary education (generally the freshman and sophomore years).
Nonresident aliens generally are not eligible to claim the Hope Scholarship Credit.
Q: Who is eligible to claim the Lifetime Learning Credit?
- A student paying qualified tuition and related expenses at an eligible
post-secondary educational institution may claim the credit. Nonresident aliens
generally are not eligible to claim the Lifetime Learning Credit.
Q: What is meant by "qualified tuition and related expenses"?
- Qualified tuition and related fees are tuition and related expenses required
to be paid for enrollment or attendance at an eligible educational institution.
Fees required to be paid as a condition of enrollment or attendance meet the
requirement of qualified tuition and related expenses. It does NOT include books,
supplies, equipment, room and board, insurance, medical expenses, transportation or
other personal or living expenses.
Q: If a married taxpayer files a separate return, may the taxpayer claim
the Hope Scholarship Credit or the Lifetime Learning Credit on his/her income tax
return?
- No. Married taxpayers may claim the credit only if the taxpayer and the taxpayer’s
spouse file a joint return for the taxable year.
Q: May a parent or student claim a credit for tuition paid in advance of when
the academic period begins?
- Generally, the credit is available only for payments of qualified tuition and
related expenses that cover an academic period beginning in the same calendar year as
the payment is made. (An academic period begins on the first day of classes, and does
not include periods of orientation, counseling, or vacation.) An exception, however,
allows a parent or student to claim a credit for payments of qualified tuition and
related expenses made during the calendar year to cover an academic period that begins
in January, February, or March of the following taxable year.
UH-SPECIFIC
Q: I attended UH during 2002 but did not receive a form. Why not?
- If your mailing address has changed since attending the University during 2002 and
you did not update that information at the campus's admissions office, it is likely that
your form was mailed to the last address on record. Please contact your campus representative
if you require the form to be re-mailed.
Q: What do I do if the information on my 1098-T form is incorrect? For example, I
was enrolled half-time but my form does not reflect this.
- This may be due to several factors:
1) The institutions were allowed to use enrollment as of a certain point in the term
to determine your enrollment status. If you dropped or added courses during the term,
the 1098-T data may not match.
2) You may claim tuition payments made between January 1 to December 31, 2002.
However, we are required to report enrollment during the January 1 to December
31 time periods which may result in the 1098-T data not coinciding with the terms for
which you are claiming the tax credit.
3) If you are a graduate student, you qualify for the Lifetime Learning tax credit only,
which does not require at least half-time enrollment. Therefore, the University did not
attempt to determine half-time status for graduate students. Thus, if the graduate box is
checked, the half-time box will NOT be checked.
Contact your appropriate campus representative. Note: Although the individual
campuses comprise the larger UH system, each campus has their own policies regarding
administrative matters. Thus, the requirements for requesting changes to student records
and admissions information will differ at each campus, and in some cases may need to be
done in person.
Q: Can you tell me the amount of the tax credit I can claim on my tax return?
- The University is NOT required to report tuition amounts or related information at
this time. Therefore, all University of Hawai‘i students will receive their 1098-T forms
without any tuition amounts reported. In addition, the school is unable to determine if you
even qualify for the tax credit. It is strongly recommended that you consult with the IRS
or an income tax expert (accountant, tax preparer, tax consultant).
Q: If I report a change in the information on my 1098-T form, will I receive an
updated copy?
- Yes. The University is required to send you an updated copy.
Q: Why isn't the amount of tuition information included on the form to help
taxpayers determine the amount of their credit?
- Due to the additional burden on institutions to acquire the data and send 1098-T
forms to their students, the IRS is not requiring the reporting of tuition amounts at
this time. It may be a requirement in the future, and the University will comply with
those requirements when necessary.
Important Note: If your tax return is audited by the IRS, you may need to
substantiate eligibility for the tax credit. Please refer to your registration receipts,
canceled checks, bank or credit card statements for payments made during the 2002 calendar
year. This is similar to what is done to determine the amount of medical expenses you may
claim. The following tuition schedules are available for viewing:
2000-2001 thru 2005-2006.
FINANCIAL AID RELATED
Q: I am repaying a student loan. Will I get a form showing the amount of interest
I paid during 2002?
- Yes, if you are paying a federal student loan or a Hawai‘i State Higher Education Loan
(SHEL), you will receive a Form 1098-E which will indicate the amount of interest paid
during the 2002 calendar year. For the Federal Perkins Loan, SHEL, and health profession
loans obtained for enrollment at the UH, you will receive a form from EFG Technologies.
For Stafford or Plus loans, you will receive a 1098-E form from you bank or loan servicing
company.
Q: If a student (who is not claimed as a dependent on anyone’s Federal income tax
return) pays qualified tuition and related expenses using a combination of a Pell Grant, a
loan, a gift from a family member, and some personal savings, what expenses may be taken into
account in calculating the Hope Scholarship Credit or the Lifetime Learning Credit the student
may claim?
- Refer to your financial aid award letters. Payments of qualified tuition and related
expenses made with the student’s earnings, a loan, a gift, an inheritance, or personal
savings (including savings from a qualified state tuition program) are taken into account
in calculating the credit amount. Payments made with a Pell Grant or other tax-free
scholarship, a tax-free distribution from an Education IRA, or tax-free employer-provided
educational assistance do not qualify as payments for purposes of the Hope Scholarship and
Lifetime Learning credits.
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