Tuition and Fees

NC State is offering an environmentally-friendly option to help you go "green" and save time and money!

The University Cashier's Office is currently promoting the use of our electronic 1098T system, commonly referred to as e-1098T. From the Account Summary page, find the Update 1098T Tax Form Delivery Options box and choose Electronic Copy.

If you select the Electronic Copy option on the 1098T Delivery Options, you will receive an email notification from studentaccounts@ncsu.edu as soon as the new statement is available online (by January 31, 2010). You can access your e-1098T via MyPack Portal and print a copy of the form for tax purposes.

1098Ts for Students enrolled in courses for academic credit at NC State University during any academic period in 2009 will be produced by January 31, 2010, if required by IRS regulations. This form contains important tax information that is being furnished to the IRS. Students may view the information provided on their 1098-T via the web at: MyPack Portal then select "Student Self Service", "Campus Finances", and "1098T" (login required).

**Please note that the 1098T reports amounts BILLED, not PAID, and most Spring 2009 tuition and fee charges were billed in 2008. Therefore, they were reported on your 2008 1098T.

The 1098-T for 2009 shows qualified tuition and fees billed to you during the calendar year as well as scholarships or grant aid applied to your account during the year. Reductions made during 2009 to qualified tuition and fees reported as billed in a prior calendar year as well as reductions to scholarships or grant aid reported for a prior calendar year are shown separately.

The Form 1098-T provides part of the information you need to claim education tax benefits provided by the Hope Scholarship and Lifetime Learning Tax Credit. The Hope Scholarship and Lifetime Learning Tax Credit are both tax credits. Tax credits are subtracted from the tax you owe, instead of subtracting them from taxable income like a tax deduction. The taxpayer must file a federal tax return and owe taxes to get this tax credit. You can't get a refund for the Hope credit if you don't pay taxes. If you owe less in taxes than the maximum amount of the tax credit for which you are eligible, you can only take the credit for the amount you owe in taxes.

The exact amount of the credit depends on the taxpayer’s income, the amount of qualified tuition and fees paid, and the amount of scholarships and grant aid subtracted from tuition.

Under Section 25A of the IRS Code, and the regulations thereunder, a taxpayer may claim an education tax credit only for qualified tuition and related expenses actually paid during the calendar year. The taxpayer may not be able to claim an education tax credit with respect to the entire amount of qualified tuition and related expenses reported for the calendar year; the amount of any scholarships or grant aid reported for the calendar year and other similar amounts not reported (because they are not administered and processed by the institution) may reduce the amount of any allowable education tax credit for the taxable year. Also, the amount of any reduction in charges for qualified tuition and fees or any reductions in scholarships or grant aid reported for a prior calendar year may affect the amount of any education tax credit allowable for the prior calendar year.

Qualified tuition and related expenses as defined by the IRS include NC State’s tuition and mandatory fees, except for the portion of mandatory fees representing Student Health Services and Transit System fees, which have been excluded from the amounts reported. In addition, under the recently enacted American Recovery and Reinvestment Act (ARRA), textbook and other course material expenses incurred in 2009 and 2010 that are not covered by scholarship or grant aid may be counted towards the newly created tax credit called the American Opportunity Tax Credit on that year’s tax return.

According to the IRS, the new credit temporarily replaces and expands the previous Hope Credit for tax years 2009 and 2010, making the American Opportunity Tax Credit available to a broader range of taxpayers. It also:

• Adds required course materials to the list of qualifying expenses
• Allows the credit to be claimed for the first four post-secondary education years instead of two

We strongly urge you to contact your tax professional for further information on how this change will affect your specific tax situation, or review Publication 970, Tax Benefits for Education, which can be downloaded from www.irs.gov. An eligible taxpayer must file a tax return and owe taxes to claim the credit. The taxpayer must also claim the eligible student as a dependent unless the credit is for the taxpayer or the taxpayer's spouse. (This means the eligible taxpayer may also be the eligible student.)

To apply for the credit, the taxpayer must report the amount of tuition and fees paid as well as the amount of certain scholarships, grants, and untaxed income used to pay the tuition and fees. The Form 1098-T is used along with the taxpayer’s own records of tuition and fee amounts paid to complete IRS Form 8863 to claim the tax credit. You may wish to talk to a tax advisor for help in calculating the amount of your credit. Additional information about education tax credits can be found at http://www.irs.gov.

The information on the Form 1098-T has been furnished to the IRS. The information shown is based on billed transactions recorded by NCSU in Calendar 2009. Accordingly, if NCSU billed your Spring 2009 tuition in December of 2008, this amount would not be included as a calendar year 2009 tuition amount. This information is provided as required by the IRS and does not represent tax advice from the University. The taxpayer should refer to relevant IRS forms and publications or their tax advisor for explanations relating to the eligibility requirements for, and calculation of any allowable education tax credit, and should not seek advice from the University.

Questions regarding information reported on the Form 1098-T for 2008 may be directed to the University Cashier's Office, 2005 Harris Hall, Raleigh, NC 27695, by e-mail at: studentaccounts@ncsu.edu or by phone at (919) 515-2986, option 6.