Tax Incentives for Education

Notice regarding 2014 1098Ts

Due to changes in tuition and fee billing cycles and timing, your 2014 1098T may show lower tuition and fee amounts billed than you’re used to seeing.  This is not an error.  Prior to 2014, spring tuition was billed the December before.  Effective spring 2015, spring tuition was billed in January.  Next year, your 1098T billed amounts will reflect both fall and spring semesters. 

Free Tax Assistance Offered by Leeds School of Business Students if You Make Less than $53,000

The tax code provides a variety of tax incentives for families who are saving for, or already paying, higher education costs or are repaying student loans.   Information on the various tax credits available can be found in IRS Publication 970.  The most current version of the form can be found at the IRS website Tax Benefits for Education Information Center.

Qualified Educational Expenses

For tax purposes, qualified education expenses are academically related fees paid to attend your campus and include only out of pocket expenses.   Qualified education expenses for tax year 2014 are tuition, all mandatory student fees, and all course fees and lab fees. Charges related to room, board, activity fees, books, equipment, insurance or other personal living expenses are not allowed when claiming education credits.  The University of Colorado reports these amounts to students each year on the 1098T form.  Funds paid from a qualified 529 plan may have additional qualified expenses that are eligible.  Check IRS Publication 970 for more information.

Disclaimer

The University of Colorado is not qualified to provide legal and/or tax advice. The information provided may or may not reflect recent revisions in IRS regulations. For tax advice on your specific situation, contact a tax professional. For additional information regarding the education tax credits you can call the IRS at 1-800-829-1040. You can also refer to IRS Form 8863 and the instructions that go with it for more information regarding how to calculate and claim the education tax credit and the loan interest deduction.