Filing Income Taxes and Education Credits

When filing your 2011 income taxes, students are able to have a portion of their tuition, fees, and educational expenses refunded. In essence, this means that students are able to get back some of the money that they use to pay for college. In technical terms, this education refund is called the American Opportunity Credit.

This education refund is available only for out-of-pocket expenses. Out-of-pocket means the money either comes directly from you or from an educational loan. Out-of-pocket funds do not include scholarships, Pell grants, or Colorado grants.

To determine if you are eligible, review your 1098-T form available through the Financial Aid Office or online student portal (CCD Connect). The two important boxes on 1098-T are Box 2 (Amounts billed for qualified tuition and related expenses) and Box 5 (Scholarships or Grants). If the number in Box 2 is greater than the number in Box 5, you have qualified out-of-pocket expenses. A certain percentage of these out-0f-pocket expenses is refundable through a 2011 income tax return.

You may also add additional educational expenses that you paid out-of-pocket to the number in Box 2. Primarily, this includes textbooks and supplies required for coursework. However, this does not include room and board, insurance, medical expenses, or other personal, living, or family expense.

You may be eligible for the education credit if you, your spouse, or a dependent you claim on your tax return was a student enrolled at a college or university. You cannot receive the education credit if you are claimed as a dependent on another person's tax return, your filing status is married filing separately, or if you or your spouse were a non-resident alien for any part of 2011.