Hope Tax Credit & Lifetime Learning Tax Credits – 1098T The Taxpayer Relief Act of 1997 created two education tax credits for students and families: The Hope Tax Credit provides up to $1,500 per student for qualified tuition and related expenses for the first two years of postsecondary education. To be eligible, students must be enrolled at least half-time in a degree or certificate granting program. The Lifetime Learning Tax Credit is more broadly applicable to any postsecondary education to acquire or improve job skills. It provides a credit equal to 20 percent of qualified expenses of no more than $10,000 per taxpayer (i.e., family) for a maximum of a $2,000 credit. Reading Area Community College cannot offer tax advice, and it is up the each taxpayer to determine their eligibility for the credit and how it would apply to them. If you should have any tax related questions, you may want to consult with a qualified tax professional and / or refer to IRS Publication 970. Additional information can be obtained at www.irs.gov or by calling 1-800-TAX-FORM. To assist you with the preparation of your tax returns, RACC will be mailing qualified students enrolled in a college credit course a 1098T. You will find information on the back of the form to assist you. If you would like additional information regarding your account history, a copy of your Transaction History can be obtained in person through the Cashiers Office. The IRS does permit institutions to report either payments received (Box 1) or the net amount of applicable charges incurred (Box 2) during the tax year. RACC has chosen to report applicable charges incurred (Box 2). Box 3 contains information regarding adjustments made to your account from the prior year. Box 4 contains information regarding scholarships and grants applied to your account. Box 6 will contain a Y if the information in Box 2 contains charges for the first three months for the next year. Box 8 will be checked if you were at least a part-time student during one academic period during the tax year. The information contained on this web page is for informational purposes only and should not be used in lieu of professional tax advice. There may be other educational tax benefits available to you as well as the Hope or Lifetime Learning tax credits.