Student Services

IRS Form 1098-T

The Tax Reform Act of 1997 created two tax credits, the Hope Scholarship Tax Credit and the Lifetime Learning Tax Credit. Due to this legislation, Pepperdine University has mailed the required Internal Revenue Service Form 1098-T (Tuition Payments Statement) to every student enrolled during the previous tax year to verify a student's enrollment for at least half time and/or as a graduate.

Pepperdine University cannot provide you with tax advice or assistance in determining whether you are eligible to claim a tax credit or how to claim a tax credit. To determine whether you, or the person who may claim you as a dependent, are eligible to claim either tax credit, please contact a tax professional or refer to IRS Publication 970 (Tax Benefits for Higher Education). If you need more information, please contact the IRS at 800-892-1040 or www.irs.gov.

Frequently Asked Questions about the Educational Tax Incentives

What is Form 1098-T (Tuition Payments Statement)?
Form 1098-T was sent to all students at Pepperdine University for whom tuition and fees were charged during the previous calendar year.

Who prepared Form 1098-T?
Pepperdine University based on information provided by the registrar's, financial aid and student account offices, which verifies student enrollment, grants and scholarships received, and tuition & fees charged, prepared the information on form 1098-T.

Why did I receive Form 1098-T?
Form 1098-T has been provided to assist you in determining if you, or the individual, who may claim you as a dependent, are eligible to claim an income tax credit on the previous year income tax return.

What is the Hope Scholarship Credit?
As of January 1, 1998, the undergraduate students in their first two years of post-secondary education, who are enrolled at least half-time, may be eligible for an income tax credit of up to 100% of the first $1,000, and 40% of the next $2,000 paid for tuition and fees in the previous tax year. If you may be claimed as a dependent, the person providing your financial support may be eligible to claim the tax credit.

If I receive Form 1098-T, does it mean I qualify for the Hope Scholarship or Lifetime Learning Tax Credits?
No, the University is required to provide Form 1098-T to all individuals who were charged tuition and fees during the calendar year.

Is it possible to qualify for both the Hope Scholarship and the Lifetime Learning Credits, and if so, may I choose which one I would like to claim?
Yes, a student may qualify for both the Hope Scholarship and the Lifetime Learning Credits at the same time. However, the qualifying expenses are the basis for claiming the Hope Scholarship or Lifetime Learning Credit, but not both. In general, students who qualify for both the Hope Scholarship and the Lifetime Learning Credit may find the Hope Scholarship Credit to be more beneficial.

How do I determine which expenses will qualify for the Hope Scholarship and Lifetime Learning Credits?
Each individual must determine which, if any, of the expenses paid may be used in the calculation of the education tax credits. Generally the only qualified expenses are tuition and fees for enrollment or attendance less the net of scholarships, grants, and VA benefits. Please note that any amounts paid for room and board, insurance, medical fees, transportation, and similar living expenses are not considered eligible.