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The College of St. Scholastica

The Finance Department supports the teaching, learning, research and outreach mission of The College of St. Scholastica by providing strategic, fiscal, operational and compliance oversight.

Financial Statements

Audited Annual Financial Statements

Tax Credit Information

American Opportunity and Lifetime Credit

This page is a resource for The College of St. Scholastica students and their parents who may be eligible for a tax credit under the Taxpayer Relief Act of 1997 (TRA97). TRA97 created two education tax credits for students and families beginning in 1998. The credits have been modified and extended by The American Recovery and Reinvestment Act (ARRA) & Tax Relief and Job Creation Act of 2010:

  • The American Opportunity Credit provides up to $2,500 per student for qualified tuition and related expenses for the first four years of postsecondary education. To be eligible, students must be enrolled at least half-time in a degree or certificate granting program. The American Opportunity Credit is available for expenses paid on or after January 1 of the tax year.
  • 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).

Eligible higher education institutions will now be required to file information reports with the IRS, and furnish statements to taxpayers (1098-T) on all students for whom they receive tuition payments.

What’s New

The American Opportunity Tax Credit modified the existing Hope Credit for tax years 2009 and 2010 under ARRA. The credit was extended to apply for tax years 2011 and 2012 by the Tax Relief and Job Creation Act of 2010. The new credit makes the Hope Credit available to a broader range of taxpayers, including many with higher incomes and those who owe no tax. It also adds required course materials to the list of qualifying expenses and allows the credit to be claimed for four post-secondary education years instead of two. Many of those eligible will qualify for the maximum annual credit of $2500 per student. This credit equals 100% of the first $2,000 and 25% of the next $2,000 of qualified expenses paid for each eligible student. The amount of your credit for 2011 is gradually reduced (phased out) if your Modified Adjusted Gross Income (MAGI) is between $80,000 and $90,000 ($160,000 and $180,000 if you file a joint return). You cannot claim a credit if you MAGI is $90,000 or more ($180,000or more if you file a joint return). For additional instructions please go to IRS Publications.


The College of St. Scholastica does not provide personal tax advice. To determine your eligibility for a higher education tax credit, please contact the IRS or your personal tax advisor.

Tax Relief Act of 1997

What are the Tax Education Credits that I’m hearing about?

In August of 1997, President Clinton signed the Taxpayer Relief Act of 1997 (TRA97) which provides a number of tax benefits to help students and their families pay for higher education. Two of the benefits include the Hope Scholarship and the Lifetime Learning Credit.

How does that affect me?

You or your parents may be eligible to claim a credit against your federal income taxes. That means you may not have to pay as much in federal income tax.

Can you explain the difference between the Hope Scholarship and Lifetime Learning Credits?

The Hope Scholarship provides a tax credit of up to $2,500 per student for qualified tuition and related expenses for the first two years of post secondary enrollment. A student must be enrolled at least half-time (6 credits) in a degree or certificate program. The Hope credit is available for expenses paid on or after January 1, 1998 for academic periods beginning on or after that date. The taxpayer is eligible for a tax credit equal to 100% of the first $2,000 paid for qualified tuition and fees (less grant aid) and 25% of the next $2,000 for a total tax credit of $2,500 maximum.

The Lifetime Learning Credit provides a tax credit of up to $2,000 per family for qualified tuition and related expenses. The tax credit eligibility covers a wider range of students. A student needs only be enrolled in a degree or certificate program or taking undergraduate or graduate classes to acquire or improve job skills. The Lifetime Learning Credit is available for expenses paid on or after July 1, 1998 for academic periods beginning on or after that date. The taxpayer is eligible for a tax credit equal to 20% of the first $5,000 paid for qualified tuition and fees (less grant aid) for a total of $1,000.

Claiming the Credits

The Hope Credit is a per-student credit. If more than one student in a family meets the eligibility requirements, the parents are allowed to claim a credit of $2,500 for 2009 and 2010 for each eligible student. The Lifetime Learning Credit is a per-taxpayer credit. Regardless of the number of students in the family, the maximum Lifetime Learning Credit that may be claimed on a tax return is $2,000.

The two credits are mutually exclusive for the same student in the same tax year. If a parent pays tuition for a student and claims the Hope Credit against that tuition payment for that year, the parent may not claim a Lifetime Learning Credit against any part of the same tuition payment for that same year, even if the payment is more than the amount the credit uses as its tuition threshold. If a parent pays tuition for two students in the same year, one of whom is eligible for the Hope Credit and one of whom is not, the taxpayer may claim the Hope Credit for the payment made on behalf of the one eligible student and the Lifetime Learning Credit for the payment made on behalf of the other eligible student, all on the same tax return.

Will the College tell me the specific dollar amount of qualified tuition and fees?

Yes. Box 2 on the 1098-T form will display the qualified tuition and fees and box 5 will display the grants and scholarships you received for the calendar year.

What is the College going to send me?

By January 31, the College is required to send a tax form (1098-T) to all students, excluding international students. The College is also required to report this same information to the IRS by February 28. This form will include:

  • Name, address, and taxpayer identification number of the College
  • Name, address, and social security number of the student
  • An indicator of whether the student was enrolled at least half-time during any academic period
  • An indicator of whether the student was enrolled as a graduate student
  • A contact person at the college where students or parents can call with questions
  • Box 2 will include an amount for qualified tuition and fees
  • Box 5 will include grants and scholarships

1098-T Frequently Asked Questions (FAQs)

What is a 1098-T?

Form 1098-T Tuition Payments Statement is the information return that colleges and universities are required to issue to students to help determine a student’s eligibility for the educational credits.

What should I do with the 1098-T form?

Bring the form to your tax advisor along with the detail of your student account and have the advisor help you determine if you qualify for the tax credits. An eligible educational institution, such as a college or university, must furnish this information to you. You, or the person who can claim you as a dependent, may be able to claim an education credit on form 1040 or 1040A for the qualified tuition and related expenses that were actually paid during the calendar year. Institutions may report either payments received in box 1, or amounts billed in box 2. {note: The College of St. Scholastica reports in box 1} The amount in box 1 or 2 may represent an amount other than the amount actually paid during the calendar year.

Please note: it is up to the taxpayer to determine eligibility for the credits and how to calculate them.

When will the College send me the 1098-T form?

The college is required to mail the 1098-T forms to all students, excluding international students, by January 31st. The college is also required to electronically report this information to the IRS by February 28th.

How can I get a reprint of my 1098-T or can I get the form electronically?

A student will be able to access a copy of the 1098-T form via my.CSS. Select the “Access your 1098T tax information” link. Students will be asked to select the appropriate tax year. Please note: St. Scholastica will not mail any duplicate forms. 

Instructions for Student

Your institution must include its name, address and contact person. Although the contact person may be able to answer certain questions about the statement, do not contact them for explanations of the requirements for (and how to calculate) any education credit that you may claim. For more information, please refer to the additional resources link above.

Account Number

May show an account or other unique number the filer assigned to distinguish your account.

Box 1

Shows the total payments received for qualified tuition and related expenses less any related reimbursements or refunds.

Box 2

Shows the total amounts billed for qualified tuition and related expenses less any related reductions in charges. (The College reports in box 1)

Box 3

Shows whether your institution changed its method of reporting for the year. (The College of St. Scholastica changed its method of reporting this year)

Box 4

Shows any adjustments made for a prior year for qualified tuition and related expenses that were reported on a prior year form 1098-T. This amount may reduce any allowable education credit you may claim for the prior year. Refer to Form 8863 or Pub. 970 for additional information.

Box 5

Shows the total of all scholarships or grants administered and processed by the eligible educational institution. The amount of scholarships or grants for the calendar year, including those not reported by the institution, may reduce the amount of any allowable tuition and fees deduction or the education credit you may claim for the year.

Box 6

Shows adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. Refer to Pub. 970 for reporting instructions.

Box 7

Shows whether the amount in box 1 or 2 includes amounts for an academic period beginning January-March 2019. See Pub. 970 for reporting instructions.

Box 8

Shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at the reporting institution.

Box 9

Shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential. If you are enrolled in a graduate program, you are not eligible for the American Opportunity Credit, but may qualify for the lifetime learning credit.

Box 10

Shows the total amount of reimbursements or refunds of qualified tuition and related expenses made by an insurer. The amount of reimbursements or refunds for the calendar year may reduce the amount of any education credit you can claim for the year.

Please note that CSS does not report in box 2 — this box should remain empty. The college reports in box 1, showing the payments received for qualified tuition and related expenses less any related reimbursements or refunds.

What if I still have questions regarding the 1098-T?

If you have additional questions/concerns you can reach OneStop Student Services

Please note: St. Scholastica is prohibited from providing legal, tax or accounting advice to students. We encourage students to contact their tax advisors or the IRS with questions.

Helpful Links

Am I eligible https://www.irs.gov/help/ita/am-i-eligible-to-claim-an-education-credit

Education Credits https://www.irs.gov/credits-deductions/individuals/education-credits-aotc-llc

American Opportunity https://www.irs.gov/credits-deductions/individuals/aotc

Life time learning https://www.irs.gov/credits-deductions/individuals/llc