U.S. Tax Benefits
Calvin College will report to the IRS the required information about students who were billed for at least one credit hour in any semester of a tax year. Calvin reports the amount of tuition charges for the year and will provide to students the IRS Tax Form 1098T as required by the Taxpayer's Relief Act of 1997. The tax form, along with the supplemental form produced voluntarily by Calvin College, should be used by your tax preparer to determine your eligibility for a tax credit. The 1098T forms are mailed to students by January 31st of the following year.
Because of each taxpayer's unique circumstances, Calvin College cannot provide tax advice or assistance related to tax credits or how to claim the credit. Please contact your tax advisor or the IRS for questions about the Lifetime Learning Credit or American Opportunity Credit.
The American Opportunity Tax Credit
The American Opportunity Credit is a tax credit for qualified education expenses paid for an eligible student, of up to $2,500 per eligible student. The student may be yourself, your spouse or your dependent(s). If you take this credit, you may not also claim the Lifetime Learning Credit (below).
Lifetime Learning Credit
The Lifetime Learning Credit is a tax credit for any person who takes college classes. It provides a tax credit of up to $2,000 on the first $10,000 of college tuition and fees. You can claim the Lifetime Learning Credit on your tax return if you, your spouse or your dependent is enrolled at an eligible educational institution and you were responsible for paying college expenses. You need not be enrolled at least half-time. Even if you took only one class, you may take advantage of the Lifetime Learning Credit.
Tuition and Fees Tax Deduction
You may be able to deduct qualified education expenses paid during the year for yourself, your spouse or your dependent(s). The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4000.00.
Student Loan Interest Deduction
Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntary interest payments. You can reduce your income subject to tax by up to $2,500.00.
Learn more about these benefits through the IRS and NASFFA
Canadian Tax Benefits
Tuition Fee Tax Credit
The Tuition Tax Credits for tuition, education amounts and textbooks are non-refundable tax credits. There is a federal tax credit as well as a provincial or territorial tax credit for tuition, education and textbook amounts.
Education Tax Credit
Starting with the taxation year, scholarship, bursary and fellowship income is fully exempt from tax when the income is received in connection with a program for which the student will get an Education Tax Credit.
Calvin College will provide Canadian tax forms TL11A to all Canadians students upon request. Requests for this form are taken by the Financial Services Office beginning the last week of January for the previous calendar year.
The TL11A verifies the registration status of the student, and provides the total dollar amount of tuition charged during the calendar year.
Non-Resident Alien Reporting
Calvin College will provide U.S. tax form 1042-S to all Non-Resident aliens by March 15. Form 1042-S is used to report income paid to a non-resident regardless of whether the payment is taxable. It can be used to report wages exempt under a tax treaty, wages earned as an independent contractor, royalties, and scholarship or fellowship grants. Students receiving form 1042-S may also receive a W-2, but all those who receive a W-2 may not necessarily receive a 1042-S.