Controller's Office

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Tax Relief Act of 1997

The Tax Relief Act of 1997 established two new education tax credits: The Hope Scholarship Tax Credit and the Lifetime Learning Credit.

Hope and Lifetime Learning Tax Credits:
The College is required to report “qualified tuition and related expense” information to the IRS on Form 1098T. IRS regulations require colleges report either tuition charges billed or tuition payments received. All scholarship awards must be reported. Room and boards fees are not considered part of “qualified tuition and related expenses” and are not reported. Muhlenberg College has elected to report the tuition charges billed for a calendar year.

Students will receive their 1098T form by January 31st. The form is sent to the student’s home address. It will list charges and scholarships for the previous calendar year.

The College is not required to file a 1098T form for those students whose entire tuition and related expenses were waived or paid by means of a scholarship, for those students whose entire tuition and related expenses were paid under a “formal billing arrangement” with an employer, governmental entity, or any other institutional third party specifically designated by the IRS as a formal billing arrangement, for those students who are nonresident aliens for noncredit courses in which students are enrolled.

Please review IRS Publication 970 regarding education credits and student eligibility. You are advised to discuss your own situation with your tax accountant. We cannot provide tax advice to you.