EDUCATION TAX CREDITS
For 2013, there are two tax credits available to persons who pay expenses for higher (postsecondary) education. They are:
The American Opportunity Credit, and
The Lifetime Learning Credit.
Who Can Claim an Education Credit
You may be able to claim an education credit if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. The credits are based on the amount of qualified education expenses paid for the student in 2013 for academic periods beginning in 2013 and in the first 3 months of 2014. For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 education credit(s).
Academic period. An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period.
Who Cannot Claim a Credit.
You cannot take an education credit if any of the following apply.
You are claimed as a dependent on another person's tax return, such as your parent's return.
Your filing status is married filing separately.
You (or your spouse) were a nonresident alien for any part of 2013 and did not elect to be treated as a resident alien for tax purposes.
Your MAGI is one of the following.
a. American opportunity credit: $180,000 or more if married filing jointly, or $90,000 or more if single, head of household, or qualifying widow(er).
b. Lifetime learning credit: $127,000 or more if married filing jointly, or $63,000 or more if single, head of household, or qualifying widow(er) .
Form 1098-TThe Federal tax notification forms, 1098T, for student tuition, will be available January 31, 2014 for tax year 2013. Students can access this form on their MYKVCTC account.
To do so please follow these steps:
If you have any questions, please call the Cashier's Office at 304.205.6602
Student Loan Interest Deduction — Form 1098-ETaxpayers who have borrowed loans to pay the cost of attending an eligible educational institution for themselves, their spouse, or their dependents generally may deduct interest they pay on these student loans. The deduction is available only for interest payments made during the first 60 months in which interest payments are required on the loan.
Eligible borrowers will receive form 1098-E from the holder(s) of their student loans. This form will report how much qualified student loan interest was paid during the previous calendar year. Borrowers may receive more than one of these if they are making payments on student loans to multiple lending institutions.
Note: For specific questions concerning the tax credits and the Student Loan Interest Deduction, or for tax guidance, taxpayers should contact the Internal Revenue Service at 1.800.829.1040, or consult with a tax advisor. You may also want to view this IRS publication, Tax Benefits for Education.