Office of Student Accounts

Tax Credit Information

The Hope Scholarship Credit became effective January 1, 1998, and has allowed up to a $1,500 maximum tax credit per year for the first two years of post secondary education for each individual student.

** New for 2009 and 2010, the Hope Credit has been modified and the name has changed to The American Opportunity Tax Credit.  Under the American Opportunity Tax Credit, the maximum amount of the Hope credit has increased to $2,500 per student and can now be claimed for the first 4 years of post-secondary education.  **

The Lifetime Learning Credit began July 1, 1998, and allows up to a $2,000 cumulative maximum tax credit per year for all students in a taxpayer's family.

Qualified tuition and related expenses

Previously, Qualified tuition and related expenses were tuition and fees (except for Health Service and Student Insurance fees) a student must pay to be enrolled at or attend Illinois State University.

** New for 2009 and 2010, the term “qualified tuition and related expenses” has been expanded to include books, supplies and equipment needed for a course of study.  For more details please visit this link:  www.irs.gov/formspubs/article/0,,id=177996,00.html   **

 The following are not qualified tuition and related expenses:

  • Charges and fees for room, board, student insurance, health services, transportation, and similar personal, living, or family expenses.
  • Amounts paid for any course or other education involving sports, games, or hobbies unless the course or other education is part of the student's degree program or is taken to acquire or improve job skills.

Specific Instructions for Form 1098-T

As an eligible educational institution Illinois State University is required to file Form 1098-T for each student who is enrolled for any semester in each reportable year. For more information about the deduction or credit see IRS Publication 970, Tax Benefits for Education, Form 8863, Education Credits, and the Form 1040 or 1040A instructions.

  • Box 1. N/A
  • Box 2. Amount billed during the calendar year for qualified tuition and related expenses less health service fees and student insurance charges.
  • Box 3. N/A
  • Box 4. Adjustments in charges from a prior year for qualified tuition and related expenses made in the currently reported calendar year that were previously reported on a 1098-T.
  • Box 5. Scholarships or grants processed during the calendar year for the payment of the student's cost of attendance. This includes all awards eligible to pay tuition, general fees, outreach fees, material charges, and writing exams.
  • Box 6. Adjustments to the amount of scholarships and grants that were previously reported on a 1098-T.
  • Box 7. If this box is checked, the amount in box 2 includes amounts for a future academic period beginning January - March of the following year.  This would include any spring semester charges that were included on the December billing statement.
  • Box 8. If this box is checked, the student was at least half-time during any academic period that began in the reported year.
  • Box 9. If this box is checked,the student was a Graduate student during spring, summer, or fall semesters of the reported year.
  • Box 10. N/A

For more information, please visit the U.S. Government's IRS Web site  or call (800) TAX-1040 or (800) TAX-FORM.

Discuss any potential tax implications with your tax advisor.