The Internal Revenue Service has proposed revisions to tuition tax credits and deductions for individual tax payers.  The changes are meant to be in alignment with the Protecting Americans from Tax Hikes (PATH).

Key things to know:

• No deduction or credit will be allowed unless there is a 1098-T, Tuition Statement, received from the eligible educational institution.
• An exception will be made for items not included on the form (e.g. required course materials that qualify for the American Opportunity Tax Credit)
• Form 0198-T should be received by January 31 of the following year
• Reporting will be more specific for qualified tuition and related expenses paid in one year that relate to the academic period beginning in the first three months of the next calendar year.  The prepaid amount would be explicitly stated
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