Frequently Asked Questions
Note: For specific tax-related questions, please contact your tax preparer or the IRS.
About the Lifetime Learning and Hope Scholarship Credits and Form 1098-T
Why has UDM sent me this Form 1098-T?
The Taxpayer Relief Act of 1997 requires eligible institutions such as the University of Detroit Mercy to provide Form 1098-T to all students who were enrolled in a university program during the calendar year. An informational bulletin that will aid you in determining your eligibility has been included as well.
There is no amount on my Form 1098-T.
That information is not required to be on your 1098. However, some financial information is provided in the letter that is attached to the Form 1098-T.
Please note: We do not provide payment information on your Form 1098-T — only charges, scholarships and grants.
What information is provided in boxes 4 and 5 on my form?
Box 4 will be checked if you were enrolled at least half-time for any term for which you were enrolled during the year. Box 5 will be checked only if you were enrolled as a graduate student for all terms in which you were enrolled during the calendar year.
How much am I eligible to claim?
Under the Hope Scholarship Credit, taxpayers can claim a maximum credit of $1,500 (100% of the first $1,000 and 50% of the next $1,000 in eligible expenses).
Under the Lifetime Learning Credit, taxpayers can claim up to 20% of the first $5,000 in eligible expenses for a maximum credit of $1,000.
What kinds of payments count when determining my tax credit eligibility?
Generally, only cash payments and student loans can be used when calculating the amount of eligible expenses paid. Consult your tax advisor.
My son or daughter was enrolled during the calendar year. Am I eligible for credit?
You may be eligible if the student meets the criteria for the Hope or Lifetime Credit and he/she can be claimed as a dependent. However, you should consult your tax advisor.
Where can I find more information?
Call the IRS taxpayer hotline at 800-829-1040 or visit their website at www.irs.ustreas.gov. Your tax preparer should also have information about these credits.
To request a statement of your student account, please call (313) 993-1421 or E-mail your request to firstname.lastname@example.org. All requests must include:
- your name,
- student number
- and the calendar year of the statement you would like to be sent.