<p>This is a new one for me! I began to fill out my taxes yesterday, as I just got my W-2. I know I could do all of the FAFSA stuff using estimates, but I would rather not go back and use the corrections. When I got to the line about choosing tuition credit or education deduction, I learned that I needed another form, and to complete that I needed the 1098-T form from the university. When I called Fin Aid office, they said the forms will be sent out next week. I never heard of this form before, but live and learn.</p>
<p>Here's my question-- since we have financial aid, how do we know how much we paid for tuition and fees alone (the IRS credit does not count for room and board or books, weirdly enough)? I am sure it will appear correctly on the 1098-T, but I would want use the estimate for the renewal FAFSA in case the 1098 doesn't arrive in time for me to make the university's February 15 deadline.</p>
<p>Check with your college student to see if the 1098-T is available for them to print or download from the computer. I don't yet know what is on the 1098-T either, but I do know my D can download it from the "secure applications" when she signs into her university account. She can also see all the financial details of tuition room board and what was paid for by whom. Check with your kid. It could all be there.</p>
<p>The 1098-T will tell you what you paid. Just be patient. It will get there. In the meantime, you CAN estimate. Just take your school tuition and fees total and subtract what your finaid was for the fall semester only (if your student is a freshman, that's all you would have paid...one semester). The tuition and fees total for the semester, minus your financial aid for the semester will give you the amount you paid...or at least a close enough estimate.</p>
<p>Thanks, Thumper. Something seems inconsistent, though. You are always a good source of info, so I totally trust what you say, concerning credit for only the fall semester. However, below is quoted from the directions for form 8863 for IRS:</p>
<p>"Qualified education expenses paid in 2007 for an academic
period that begins in the first 3 months of 2008 can be used only
in figuring your 2007 education credits. For example, if you pay
$2,000 in December 2007 for qualified tuition for the 2008 winter
quarter that begins in January 2008, you can use that $2,000 in
figuring your 2007 education credits (if you meet all the other
requirements)."</p>
<p>Since we had to pay Spring 2008, which begins January 2008, by January 1, and did pay it in November, can we claim Spring 2008 semester as ed or tuition credit?</p>
<p>I'm not sure of the answer to this question. Which question on the FAFSA are you referring to? I completed two of them yesterday with my kids and I don't recall needing this info...but we don't qualify for any of the credits.</p>
<p>And....disclaimer here....I am NOT a financial aid expert or professional. I am a parent. The best way to get definitive answers to FAFSA questions is to call the FAFSA helpline.</p>
<p>YES, if you paid for the spring 2008 semester, you can add that to the amount you paid in 2007. Also, you can count loans as part of your payment.</p>
<p>for example. Tuition is 35000, scholarship is 30000, loan for 2000, paid cash of 3000.</p>
<p>You can claim 5000 as amount paid (assuming you paid it in 2007 for the fall 2007 and spring 2008 terms)</p>
<p>Sue...I don't understand how you got $5000 when the out of pocket expense for the above example has only $3000 cash paid. It looks like you included the loan. I was under the impression that unless you PAID the loan off, it was not included in the family amount paid for the year.</p>
<p>You guys are great, as always! Thanks so much for taking the time!</p>
<p>I just read IRS publication 970. It said that they only way loans are part of the mix, is if you pay any of the INTEREST on the loan. But I don't believe the actual loan, per se, is part of the money that can be claimed in the tuition credit, or education deduction. But, Sue, I agree with your interpretation that we can take the amount paid for Spring 2008.</p>
<p>Same for the hope credit (page 9) or Lifetime learning (page 19)</p>
<p>Paid with borrowed funds. You can claim a Hope/lifetime learning credit (or tuition and fees deduction) for qualified education expenses paid with the proceeds of a loan. Use the expenses to figure the credit/deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account.</p>
<p>the only other thing I want to point out is the tax-free earnings from a 529 can't be using to pay the qualified expenses that you are also claiming for the deduction/credit.</p>
<p>for example. I took out 12000 from a 529. Of that, $150 was interest (tax free earnings) and 11850 was the original $$ that I put in. I have to deduct $150 from the amount of the qualified expenses I am claiming for the hope/lifetime learning deduction or tax credit (which is a max of $4000).</p>
<p>Since my tuition expense was $5340, this is a non-issue for me.</p>
<p>Our S is a freshmen this year and I can remember spending all that time last year completing the FAFSA and CSS, just to find out I get to do them again this year. I hear that the second year is much easier to complete. Now I am hearing for the first time about this 1098 and I am not sure I understand what it is. Can someone please explain to me what exactly it is and who gets the tax credit if applicable? S has a subsidized loan and the rest of his tuition is being paid for by us. Thanks</p>
<p>I only learned about it yesterday. I began to fill out my taxes so that I could do my FAFSA. There is a line where you can claim tuition deductions. So I got the appropriate form on line, as directed by the instructions in the 1040A packet. It's probably the same in the regular 1040. It was on these IRS forms-- can't recall the number of the forms, they're in another room at the moment-- that reference was made to the 1098-T that the school will send us. I called Fin Aid office and they said the forms will be sent next week. And so it began... You need this form only if you are going to claim the tuition deduction OR the Hope credit/Lifelong Learner credit. It's explained in the instruction booklet from the IRS.</p>
<p>just this mom:
FAFSA needs to be completed each year; Profile is only the year prior to attending, when applying to all the colleges. And since you filed last year, you can do a renewal FAFSA on the web - it will be prefilled with a lot of the info you submitted, so you don't have to retype everything.</p>
<p>General tip re: form 1098T; many schools may have this available online in the student's university account, probably under financial info. Our older S at UMiami was able to send it to us for printout, 2007 already in there.</p>
<p>CORRECTION TO ABOVE (sorry!):
Once I posted about submitting the Profile only once during the app process of senior year, I realized we only had to do it once because Miami doesn't require Profile..; When S went through apps process two years ago, we dutifully submitted Profile to the schools that required it. Once he said yes to Miami, we didn't have to submit it again. So if your college requires it, yes, you do have fill it out each year.</p>
<blockquote>
<p>Profile is only the year prior to attending, when applying to all the colleges.>></p>
</blockquote>
<br>
<p>Correction noted above...but to make it clear. SOME schools require completion of the Profile (and FAFSA) annually for financial aid renewal. AND yes, for some schools, this even means merit aid. You need to check YOUR college(s)' websites to see which forms are required each year...and the deadlines.</p>
<p>The requirements for filing for financial aid vary wildly. Also the requirements for refiling the Profile vary wildly (even moreso). For example, DS's school required the Profile and FAFSA be completed for finaid renewal until his junior year...when they decided this was only needed for need based awards. BUT IF your finances changed, the Profile needed to be filed (even for merit aid). SO...when little sister was going to be a freshman, we had to do the Profile again because "our circumstances changed". It was the school rule. So...check your schools for their "rules".</p>