Your college or university will report payments it received for qualified tuition and related expenses on IRS Form 1098-T (Tuition Statement). Box 1 lists payments received for qualified tuition and related expenses from all sources.
Where do I put a 1098-T on my tax return?
Reporting qualified expenses
- If the school reports the amount paid, it puts that figure in Box 1 of the form. If it reports the amount billed, it does so in Box 2.
- A school generally has to use the same reporting method every year. If it changes its method—which requires IRS approval—it puts a check mark in Box 3.
Do I have to put my 1098-T on my tax return?
The IRS Form 1098-T is an information form filed with the Internal Revenue Service. The IRS Form 1098-T that you received reports amounts paid for qualified tuition and related expenses, as well as other related information. There is no need to attach Form 1098-T to your tax return.
Where do I put my 1098-T on Turbotax?
Open the app and sign in. Select Deductions & Credits then Review/Edit. Choose Education then Expenses and Scholarships (Form 1098-T).
What is a 1098-T tax form used for?
A form 1098-T, Tuition Statement, is used to help figure education credits (and potentially, the tuition and fees deduction) for qualified tuition and related expenses paid during the tax year. The Lifetime Learning Credit offers up to $2,000 for qualified education expenses paid for all eligible students per return.
Why does my 1098-T lower my refund?
Two possibilities: Grants and /or scholarships are taxable income to the extent that they exceed qualified educational expenses to include tuition, fees, books, and course related materials. So, taxable income may reduce your refund.
What happens if I don’t file my 1098-T?
No, if you did the math in your head, and you did it right, the credit will be issued. If you went light on the tuition expense, and you were still eligible for the full credit, the additional tuition would not matter if you had nothing more to match it to.
Where do I enter tuition and enrollment fees on TurboTax?
1) In TurboTax Online, enter 1098-T into the search field (magnifying glass) in the upper right of your screen. 2) Select the Go to 1098-T button. Even if you don’t have a 1098-T, you can still enter tuition and fees info in this section.
How do I enter tuition on TurboTax?
You would enter the 1098-T information under the Federal section of the TurboTax program.
- Select “Deductions & Credits”
- Select “Expenses & Scholarships (1098-T)”
- Click start.
- Follow the screen to enter the applicable information.
Does 1098-T include room and board?
No, room and board is not reported on 1098-T and is not an eligible education expense for the education credits; HOWEVER, if you received certain unrestricted tax-free assistance, such as a scholarship or distributions from a college savings account, you could apply those tax-free funds to room and board, therefor
Where can I file my 1098-T for free?
You can file your federal income tax return using Credit Karma Tax® and claim any education credits you may be eligible for, since the free online tax-preparation and filing service supports forms 1098-T and 1098-E.
Guide to Tax Form 1098-T: Tuition Statement
Currently being updated for Tax Year 2021 / January 31, 2022 at 12:52 p.m. OVERVIEW Students who paid “qualified educational expenses” in the previous tax year must get a Form 1098-T from their colleges or other post-secondary institutions that are eligible to do so. Tuition, any fees that are necessary for enrollment, and course materials that are required for a student to be enrolled in or attend an approved educational institution are all considered qualified costs. Subscribe: Apple Podcasts|Spotify|iHeartRadio are examples of podcasting services.
Box 1 of the form is used by schools to record the money they have received.
Scholarships and grants are not included in the calculation of qualified expenses.
What is the 1098-T form?
The Internal Revenue Service Form 1098-T should be sent to tuition-paying students at qualified universities or other post-secondary institutions once a year by their school. The majority of colleges, universities, and vocational schools that are qualified to participate in the Department of Education’s student aid programs are considered to be eligible for this program. Education-related tax credits may be available to students, as well as to their parents or guardians if the student is still considered a dependant.
Who gets the 1098-T form?
Every student who paid “qualified educational expenses” during the previous tax year must get a Form 1098-T from their school. The following are examples of qualified expenses:
- Tuition, any fees that are necessary for enrollment, and any course materials that are required for a student to be enrolled are all included in the cost of attendance.
Even if someone else pays such costs on the student’s behalf (such as a parent), the student still earns “credit” for them and receives the 1098-T form in return. Schools are required to transmit the form to the student by January 31 and to file a copy with the Internal Revenue Service (IRS) by February 28.
Reporting qualified expenses
Over the course of the years 2017, 2018, and 2019, the education expense reporting system and the Form 1098-T have been changed. According to IRS regulations, schools might report a student’s eligible costs one of two ways in 2017: either on how much the student actually paid throughout the year or based on how much the school invoiced or billed the student during the year.
- Whenever a school reports the amount of money it has received, it enters that information in Box 1 of the form. If it records the amount billed, it does so in Box 2
- A school is required to utilize the same reporting method year after year, unless otherwise stated. If it decides to modify its approach, which needs IRS permission, it checks the appropriate box in Box 3. This box is mostly for the information of the Internal Revenue Service, not the student’s
In 2018, the form was revised to indicate only amounts actually paid for eligible tuition and related expenditures, rather than amounts just claimed as reimbursement.
- Box 1 is used by schools to record the money they have received. Despite the fact that Box 2 is no longer in use, Box 3 still had a check box to indicate a change in the manner of reporting from the amount billed to the amount paid method
- However, Box 3 is no longer in use.
The check box for changing techniques will no longer be required after 2018, when only one method will be available for the current and past years. As a result, Box 3 will no longer be necessary after 2018.
Expert Tip: Form 1098-T contains information regarding educational costs that may be eligible for tax credits if the student (or the student’s parents or guardian, if the student is still considered a dependant) qualifies for such credits while enrolled in school.
Adjustments and scholarships
Adjustments to eligible expenses recorded on a prior year’s 1098-T are detailed in Box 4 of the form. If it turns out that a student’s costs for a prior year were lower than they were first reported, the student may be liable for extra tax for that year. Box 5 indicates the amount of scholarships and grants that were awarded to students and given directly to the institution to cover their educational expenditures. Scholarships and grants may lower the amount of eligible expenditures that may be deducted from a student’s income when computing his or her tax deduction.
It is possible that these modifications will have an impact on the student’s tax burden for the prior year, and that the student will be required to file an updated return.
It is necessary for schools to tick Box 7 if the amount in either Box 1 or Box 2 includes costs for an academic term that begins in the first three months of the following year following the year covered by the 1098-T. Box 8 shows that the student is enrolled at least half-time if a check mark is placed in it. A check mark in Box 9 shows that the student is currently enrolled in a graduate program at the university.
Box 10 of the form is only relevant in circumstances where students have had their fees refunded under the terms of a “tuition insurance policy.” Students who are compelled to withdraw from school due to medical reasons or family problems, for example, might be reimbursed under such policies after having paid nonrefundable tuition.
- It is the responsibility of an insurer to deliver a copy of the 1098-T to any students who have been reimbursed for their expenditures by the insurer
- The only box that is filled in is Box 10, which indicates the amount of money that has been repaid. In most cases, any reimbursement stated here must be deducted from the amount of costs used to compute credits.
Remember, with TurboTax, we’ll ask you a few easy questions about your life and assist you in filling out all of the necessary tax paperwork. With TurboTax, you can be certain that your taxes will be completed correctly, whether they are basic or complex tax returns, regardless of your situation.
All you need to know is yourself
Provide straightforward answers to a few easy questions about your life, and TurboTax Free Edition will take care of the rest. Simple tax returns are all that are required.
Video: Guide to IRS Form 1098-T Tuition Statement
This version is for the Tax Year 2021 / October 16, 2021 at 05:35 a.m. OVERVIEW If you have costs linked to your education, you may be entitled for a tax credit or deduction for those expenses. Watch this video to learn more about the Form 1098-T Tuition Statement and the costs that qualify as eligible educational expenses.
Hello, my name is Amir and I’m here to provide you with some useful information on the IRS Form 1098-T. In the event that you or one of your dependents was enrolled in school during the tax year, you’ll want to keep a look out for a 1098-T form, which should arrive by January 31st. An individual’s eligible education costs paid by him or her throughout the calendar year are reported on Form 1098-T. Because the Internal Revenue Service does not consider every educational spending to be a qualifying item, it is critical to obtain this information on your 1098-T.
Boxes 1, 2, 5, and 7 on your 1098-T form will include a great deal of valuable information, but they will be the most crucial for you when filing your tax return.
- Detailed information about any payments you’ve made to the school for eligible educational costs is contained in Box 1. If the school bills you for qualified education expenditures, you must report them in Box 2. The total of qualified education expenses in Box 2 may not be the same as the total of qualified education expenses in Box 1. Box 5 contains the scholarships and awards that were awarded to you by your school. That’s significant since most scholarships and grants are tax-free provided you utilize the cash for educational expenditures rather than for personal gain. However, the Internal Revenue Service (IRS) will compel you to lower the amount of eligible educational costs you claim as a credit. Finally, Box 7will indicate if any of the payments you’ve made are for courses that will commence during the first three months of the next tax year, if applicable. Depending on your situation, you may be eligible to claim that amount as a credit or deduction for the current year.
Remember, with TurboTax, we’ll ask you a few easy questions about your life and assist you in filling out all of the necessary tax paperwork. With TurboTax, you can be certain that your taxes will be completed correctly, whether they are basic or complex tax returns, regardless of your situation.
All you need to know is yourself
Provide straightforward answers to a few easy questions about your life, and TurboTax Free Edition will take care of the rest. Simple tax returns are all that are required. In the preceding article, generalist financial information intended to educate a broad part of the public is provided; however, customized tax, investment, legal, and other business and professional advice is not provided. Whenever possible, you should get counsel from an expert who is familiar with your specific circumstances before taking any action.
How to Read a 1098T
In the workplace, the most often asked questions are: “When are you delivering 1098T forms?” and the follow-up inquiry, “You accidentally filled out the wrong box.” Students and faculty are expected to submit Form 1098-T, but the regulations governing what they must contain may not always align with the requirements of doing your taxes, especially if you or your tax program is unfamiliar with how to read them.
- That form may contain information that can assist you in claiming a significant tax credit; alternatively, it may contain information regarding scholarships that must be declared as income, which is frequently overlooked.
- Form 1098T – How to Read It The IRS produced the Form 1098T when the earliest education tax credits were enacted into law, which were the Hope (now known as American Opportunity) and Lifetime Learning credits, respectively.
- Prior to 2018, universities had the choice of filling out either Box 1 or Box 2 on the Qualified Tuition and Related Expenses form, depending on their situation.
- Colleges are now required to submit in Box 1 of the federally mandatory tax filing.
- Box 5, Scholarships or Grants, is also featured on the application form.
- Let’s start with the process of computing the credit.
Furthermore, they are only tax-free to the degree that they are used to pay for tuition (and related expenses).
Consequently, if the scholarship is intended to pay for tuition and you do not utilize it for that purpose, you will not be able to get credit.
Box 1 shows the amount of money that was paid throughout the year for Qualified Tuition and Expenses that were incurred during the year.
This allows taxpayers to make some preparations, but it also makes things more complex.
The question is, what did you spend for it?
For some, the information on the 1098T is sufficient to satisfy their needs.
Things to keep in mind: all of your payments, including those on credit cards and student loans, are taken into consideration (see below).
If you are unsure, it may not be a terrible idea to enlist the assistance of a professional, at least for the first time.
Part students will go through the calculations outlined above, whether they are simple or difficult, and discover that they have received enough scholarship and grant help to not only cover tuition, but also to cover some of the costs of living expenses.
That implies you received a substantial amount of free money to use for education.
Scholarships or grants that are in excess of eligible tuition and related expenses are considered taxable income to the scholarship or grant winner.
In the same way that you record wages, this income must be reported as well.
“SCH” should be entered just to the left of line 7 on your form 1040, 1040A, or 1040-EZ to indicate that it is a Schedule C.
The other issue with depending on Form 1098T, which the information institutions do not keep track of, is who is responsible for paying.
Payments made by cheque or credit/debit card are simple to track down for you.
Federal Direct Loans are granted only to students, and therefore do not constitute a payment from the parent in any way.
As previously indicated, scholarships constitute taxable income for the student.
The Form 1098-T and Your Income Tax Return It is not necessary for you to include IRS Form 1098-T with your tax return.
The primary objective of the IRS Form 1098-T is to advise you that Muskingum University has given the IRS with the information they require in order to help them in assessing who may be qualified to claim the tuition and fee deduction or an education credit on their federal income tax returns.
- It may be necessary to read over the help file a little.
- Form 8917 is used to deduct tuition expenses.
- Scholarships must be reported on line 7 of Form 1040, 1040A, or 1040-EZ, depending on the tax year.
- This is the field where you will enter the taxable scholarship.
- Here are some crucial points to keep in mind: Is it really worth it?
- Tax credits have the potential to lower your tax liability by up to 100 percent of what you paid (American Opportunity Credit).
- Despite the fact that you had to pay taxes on part of your scholarships, the fact that you did not have to pay for the school is a blessing in disguise.
That indicates that 80 percent of the money was free!
They might be the grant award granted by the school, a Pell grant or SEOG, State Financial Aid, or the scholarships offered by local rotary and foundation organizations.
If you don’t want to, that is entirely up to you.
However, this is not the same as a “audit,” as it just means that they will ask select people to verify the numbers they used.
That does not imply that you should limit yourself to Form 1098T.
As long as you have documentation to back up your claims (such as checks and bank records), you will be OK.
For others, this may include seeking the services of a tax preparer.
Best of luck.
None of the information provided here should be construed as particular tax advice.
You should carefully consider your options and, if required, seek the advice of a tax professional.
Muskingum University got the name, Social Security Number, and address on Form 1098-T from information submitted to the university; nevertheless, the address on Form 1098-T is immaterial for the purpose of filing income tax returns with the Internal Revenue Service.
You must ensure that both your name and Social Security Number are right and that they match the information on your social security card.
VERY USEFUL LINKS Instructions for Forms 1098-E and 1098-T are available online (2019) Tax Trails from the IRS: This is an interactive tool to assist you in locating answers to common tax queries pertaining to tax credits, deductions, and taxable income, among other things.
How to Report Taxable Scholarships on Your Tax Return
It is possible that some of your scholarships, grants, and fellowships will be taxable, while others will be tax-free. Calculating the Taxable Portion of Scholarships, Grants, and Fellowships is a complicated process. When studying toward an undergraduate or graduate degree or certificate and your scholarship, grant, or fellowship does not include a fee for services, the part of your award that you use to pay for eligible tuition and related expenses may be exempt from federal income taxation.
Even if you are pursuing a degree, any funds used for housing and board, medical expenditures (including student health fees), transportation, and other living expenses are subject to taxation.
How much will you be expected to pay?
Create a Cappex account to check your net cost for any school. How to Interpret IRS Form 1098-TY our institution or university will disclose funds it received for qualifying tuition and associated expenditures on IRS Form 1098-T (Tuition Statement) (Tuition Statement).
- Box 1 has a list of payments received for eligible tuition and related fees from all sources
- Box 5 contains a list of scholarships, grants, and fellowships that have been made available to the institution or university. However, these scholarships, fellowships, and grants are not necessarily restricted to the eligible tuition and related fees stated in Box 1
- Instead, they may cover a broader range of expenses.
A student who receives a scholarship, grant, or fellowship that is intended to cover living expenses but is not limited to living expenditures may elect to use the money to pay for eligible tuition and related expenses, which would result in the money being excluded from income. It is possible, on the other hand, that the institution or university is ignorant of scholarships, grants, and fellowships that are available to them, such as monies that are paid directly to the student. As a result, the amounts provided on IRS Form 1098-T are intended to serve as a reference to assist you in determining the taxable component of your scholarships, grants, and fellowships, rather than providing a final answer.
- It is assumed that you have taxable fellowships, scholarships, and grants equivalent to at least the difference between Box 5 and Box 1.
- When it comes to federal income tax reporting, the easiest option is to record the difference between boxes 5 and 1, as well as any fellowships or scholarships that your institution or university is ignorant of, as taxable income on your federal income tax return.
- Box 1 may include just tuition and fees in the case of some universities, while Box 2 may contain only course materials in the case of others.
- When actual expenditure on necessary textbooks, supplies and equipment exceeds anticipated spending, save your receipts and base the computation of the taxable part of your scholarships, grants and fellowships on the actual eligible tuition and related costs that you incurred.
This may allow you to deduct a percentage of your scholarships, grants, and fellowships from your taxable income.
Still looking for scholarships to pay for college?
Examine the scholarships for which you may be qualified. Scholarships, grants, and fellowships that are taxable must be reported on your income tax return. Make sure to include the taxable amount of the scholarships, grants, and fellowships as part of the total for the “Wages, salaries, tips, and other compensation” line on your federal income tax return:
- Line 1 of IRS Form 1040EZ
- Line 7 of IRS Form 1040A
- Line 7 of IRS Form 1040
- Line 1 of IRS Form 1040EZ
- Line 1 of IRS Form 1040
It doesn’t matter whether or not the taxable amount of the scholarships, grants, and fellowships was reported to you on an IRS Form W-2. It is acceptable to enter “SCH” and the taxable amount on IRS Form W-2 if the taxable amount was not disclosed to you on the IRS Form W-2.
- In the case of IRS Form 1040EZ, there is a blank space to the left of line 1. On IRS Form 1040A, there is an empty space to the left of the seventh line. On IRS Form 1040, there is a dotted line to the right of line 7.
Resources that aren’t included on this page For further information, read Chapter 1 (Scholarships, Fellowship Grants, Grants and Tuition Reductions) of IRS Publication 970 and theInstructions for IRS Form 1098-T (Scholarships, Fellowship Grants, Grants and Tuition Reductions).
Which scholarships are you eligible for?
Create an account to find out how much your projected family contribution will be worth. To select, fund, and attend the college that’s appropriate for you, register for a free Cappex account today. Get Started Right Away
Why Do Colleges Send 1098-T Forms?
In the event that you are a college student, you will most likely receive a 1098-T form, which serves as a tuition statement from your institution or university, around tax time. (Please note that this is an IRS form, not a form provided by a college or university.) I’ve detailed what this IRS tax form reports and how it impacts your taxes to assist you better grasp what this form is all about. Do you have any additional questions about student tax filing? Make sure to check out ourTax Guide for College Studentsto learn more about student tax forms that may be submitted for free.
What is a 1098-T?
Let’s review the question “What is a 1098-T form?” as a reminder. … Your 1098-T form, sometimes known as the “college tax form,” will show you how much you spent for eligible school costs for the tax year in question (in Box 1). The amount is reported by the school to you as well as the Internal Revenue Service.
Qualified Expenses Included on the 1098-T Tax Form
If you attend an approved college, tuition and fees are considered qualified expenses, and they may appear on your 1098-T tax form. They can also offer specific course materials if enrolment in the course is needed. Other expenditures, such as lodging and board, transportation, and other comparable personal charges, are not eligible for reimbursement. As a result, the amounts associated with such costs will not appear on your Form 1098-T. Tuition for continuing education courses that are not taken for academic credit, as well as tuition for courses that are dedicated to sports or hobbies, may not be considered eligible costs.
What is an Eligible Institution?
An qualified educational institution can be any type of institution, including a college, university, vocational school, or other similar establishment.
In order to participate in the Department of Education’s student aid programs, the institution must meet certain requirements. The entire list of qualifying institutions may be seen here.
What Should You Do With Form 1098-T?
In order for you to claim education credits or a tuition and fees deduction on your tax return, the information on the form must be recorded and is required to be collected. It is possible to earn thousands of dollars in education credits by completing two courses (explained further below). Using the information on the 1098-T form, you can figure out how much of a tax credit you (or, in certain cases, your parents) may claim on your federal income tax return.
Education Credits and Deduction
Based on your qualifying costs, you may be eligible for two types of education credits: (1) the American Opportunity Tax Credit and (2) the Lifetime Learning Tax Credit.
- The American Opportunity Tax Credit has a maximum value of $2,500 and may be claimed once. Furthermore, because the credit is partially refundable (up to 40%), you (or your parents) may be able to get a refund even if you do not owe any federal income taxes. That’s correct, the government may give you a check in the amount of up to $1,000 to assist you with your college expenditures. Students who are under the age of 24 are often ineligible for the refundable credit, but their parents may be eligible for the credit. This credit is only valid for undergraduate tuition and is only valid for a total of four years. In order to be eligible for this credit, you must be enrolled at least half-time in a degree program. In addition to half-time status, which is established by the institution and shown on the Form 1098-T, there is the Lifetime Learning Credit, which can be used to undergraduate or graduate tuition and does not need the student to take a course load or to be enrolled in a degree program. Despite the fact that this is a nonrefundable credit of up to $2,000, it is still an excellent strategy to lower the amount of tax you owe
- Deductions for tuition and fees. Higher education costs that qualify are eligible for a deduction of up to $4,000 per year. This deduction has been reinstated for the fiscal years 2018-2020.
Adjustments Shown on 1098-T,Student Loan Interest Statement and Tuition Statement
It also includes information on changes in your educational costs from the previous year on your 1098-T form. A good example would be if you dropped from a college course and were given a refund for your time. Another example would be if you were awarded a scholarship that lowered the amount of money you would have otherwise due.
- Box 4 displays any modifications that your institution made to account for qualifying costs incurred in a previous year. If you have an amount shown in Box 4 of your 1098-T, it may be used to lower the amount of acceptable education credit you were able to claim for the previous year. It is possible that you will have a higher tax responsibility for the current tax year as a result of this
- Box 6 displays adjustments to scholarships or grants you received in a previous tax year. This sum may have an impact on the education benefits you were eligible for in the previous year. It is possible that you may be required to file an updated income tax return (Form 1040X) for the previous year.
It should be noted that approved tuition expenditures that are paid for using an education loan are still eligible for the education credits.
1098-T Forms Questions
A 1098-T form contains vital information that you may utilize to obtain a tax credit for your school expenses. Furthermore, a skilled tax professional is an excellent resource to consult with while you and/or your family choose which education tax advantages are most advantageous for you. Our skilled tax professionals at H R Block would be pleased to assist you with Form 1098-T and other school tax forms if you need it.
Explanation of IRS Form 1098-T
Form 1098-T from the Internal Revenue Service: Explanation The IRS Form 1098-T is issued to you as required by the Internal Revenue Service in order to provide you with information that may be useful in filing your individual tax return. When it comes to qualified tuition and related expenses, the information stated on IRS Form 1098-T may differ from the amount you actually paid toward such expenses (hereafter known as QTRE). Whenever possible, we recommend that you obtain expert guidance while claiming an education tax credit.
- When you receive an IRS Form 1098-T, you can use it to report amounts paid for qualified tuition and related expenses, as well as other relevant information. The IRS Form 1098-T that you receive will report amounts paid for qualified tuition and related expenses, as well as other relevant information. All information that Appalachian State University can or will provide you is on the 1098-T form or is included on this webpage. You or the person who may claim you as a dependent may be able to claim an education tax credit on IRS Form 1040 for qualified tuition and related expenses that were actually paid during the calendar year. The discussion of tax consequences, how this form may relate to you, or the provision of tax advice are not permitted. If you have any queries about this paper, you should check with your tax preparer. Some useful links to the Internal Revenue Service (IRS) at the bottom of this page may provide you with further information on how form 1098-T may affect you. We will only be able to send you or your tax preparer to this webpage in order to address your questions since we are unable to give tax advice or explain the ramifications of the IRS Form 1098-T.
Acknowledgement of amounts paid in connection with qualified tuition and related expenses In BOX 1 of the IRS Form 1098-T, the amount of qualifying tuition and related expenditures that were paid during the calendar year is reported. The term “qualified education costs” is often used to refer to this, however the two terms are not necessarily interchangeable. For further information, speak with a tax professional. Appalachian State University has concluded that the following charges are included or not in qualifying tuition and related expenditures for the purposes of the Internal Revenue Service Form 1098-T, based on an interpretation of the limited IRS advice that has been provided.
When claiming one of the related credits, you may include eligible tuition and associated costs that are not recorded on IRS Form 1098-T if you can demonstrate that you paid these expenses.”
|Qualified Tuition and Related Expenses INCLUDED||Charges not considered Qualified Tuition and Related expenses and therefore NOT INCLUDED|
- Tuition for residents and non-residents
- Program-specific charges (e.g., Tuition Differential for Masters Programs such as MBA, MS Accounting, MS Analytics, and MHA)
- And other fees and charges Required General Fees (Excludes Health Services Access Charge)
- Book Rental Fee (undergraduate)
- ASG Fee (Association of Student Government)
- EducationTechnology Fee
- SafetySecurity Fee
- Student Activity Fee (Summer charged separately, Fall/Spring included in General Fee – both are included)
- Costs for housing
- Dining, meal plans, and Express Account expenses
- Insurance (such as BCBS Student Blue Medical Insurance)
- And other charges Charge for Intern Practicum (including liability insurance)
- Late fees and interest on past-due accounts
- Library fines and fees
- Orientation costs
- Parking permit or fines
- Health services access fee
- Other health service charges
- Department fees for non-return or damage (e.g., books not returned, Chemistry Breakage)
- Wellness service fee
- And other expenses.
Please keep in mind that the timing of each expense, payment, and scholarship is critical in determining which year they should be reported in. Many students will be charged fees between November and December of 2020. Because many students received payments in excess of their QTRE in 2020, it is possible that the BOX 1 amount for the Spring 2021 term was included in the 2020 1098-T report. In many of the same conditions, the student was also awarded scholarships and grants for the spring semester of 2021 that did not become available until January of the following year.
- Regarding the implications of this for your specific tax position, you should contact with a tax professional.
- These are not included on your 1098-T tax return form.
- It is recommended that you supply this information to your CPA or tax adviser so that they may determine whether or not the costs are categorized as QTRE and, therefore, possibly tax deductible if paid.
- In Box 4, you will see an amount that indicates a decrease in tuition that was billed during a previous calendar year.
- The amount given in BOX 4 represents the reduction in QTRE as a result of the withdrawal or drop of courses that resulted in a reduction in the QTRE.
- For further information, consult with your tax adviser and/or the IRS Form 8863/IRS Publication 970.
- Please keep this in mind.
- Please get guidance from a tax expert and/or IRS Form 8863 and IRS Publication 970 if you have any questions.
- BOX 5 of the IRS Form 1098-T contains information on the total amount of scholarships or grants that were administered or processed by the Office of Student Accounts and/or the Office of Student Financial Aid during the fiscal year in question.
- Many students will be charged fees between November and December of 2020.
- In many of the same conditions, the student was also awarded scholarships and grants for the spring semester of 2021 that did not become available until January of the following year.
Due to this, it is possible that the 2021 1098-T may have zero in BOX 1, but BOX will be filled. Regarding the implications of this for your specific tax position, you should contact with a tax professional. The sum indicated in BOX 5 does not include the following items:
- The following are examples of tuition exemptions offered during the calendar year: Student Loans, Work Study, and Employment
- Scholarships, grants, reimbursements, and other forms of sponsorships that are not handled by the Office of Student Accounts and/or the Office of Student Financial Aid
According to IRS guidelines, funds received in the form of Veteran’s Education Benefits are included in BOX 5. High-Ed Emergency Response Funds (CARES HEERF) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was enacted on March 27, 2020, permit higher education institutions to use certain funds allocated by the Department of Education to assist students, higher education institutions, and the general public with expenses and financial needs related to the coronavirus (COVID-19) pandemic.
- In accordance with IRS regulations, we have excluded any CARES HEERF Funds that were granted to students from the 1098T tax return.
- See the IRSFrequently Asked Questions on CARES HEERF Fund Awards for more information.
- BOX 6 of the IRS Form 1098-T contains information on changes made to scholarships or grants that were reported on a prior year Form 1098-T that was in BOX 5 the previous year.
- According to BOX 6, the amount you indicate in BOX 6 for modifications to scholarships or grants may have an impact on the amount of education credit you are eligible to claim for the previous year.
- BOX 7 indicates, if ticked, that BOX 1 contains sums for an academic session commencing in the next year.
- This box will be checked if you enrolled and paid for the forthcoming Spring Semester during the months of November or December.
- It is determined whether or not you are considered to be enrolled in a graduate-level degree, certificate, or other authorized educational credentialing program in BOX 9.
- As a bonus, you might find the links provided below useful in understanding the instructions, the purpose, and whether or not the 1098-T is applicable to your particular tax situation.
- The discussion of tax consequences, how this form may relate to you, or the provision of tax advice are not permitted.
Some useful links to the Internal Revenue Service (IRS) at the bottom of this page may provide you with further information on how form 1098-T may affect you. Please consult with a tax specialist if you require assistance. The most recent update was on January 7, 2022.
Form 1098-T: Frequently Asked Questions
It is possible to claim educational-related tax credits if you have a Form 1098-T, Tuition Statement, which provides information to aid the Internal Revenue Service (IRS) and you in deciding if you are qualified. More information on these credits may be found in IRS Publication 970, or you can speak with your personal tax expert.
Am I required to submit my 1098-T to the IRS?
No, Form 1098-T is intended solely for informational reasons and does not need submission to the Internal Revenue Service by the student.
When will I receive my Form 1098-T?
After indicating your willingness to receive your 1098-T electronically, your form will be accessible for viewing on the student site before January 31. Once the form is available for viewing, an email will be sent to the address associated with your College of DuPage account. Instructions on how to see your 1098-T online will be included in the email you receive. If you did not give your agreement to receive Form 1098-T electronically, the form will be delivered to the address on file with College of DuPage that corresponds to your home address.
What reporting changes occurred with Form 1098-T?
Because of a change in federal legislation governing institutional reporting obligations, the College will record in Box 1 the amount of qualifying tuition and related expenditures you paid for the calendar year beginning with tax year 2018. If you have any more questions about the information on your 1098-T, please read Understanding my 1098-T for more information.
What educational expenses are considered qualified tuition?
Undergraduate tuition, student fees, technology fees, and general service fees are all considered qualified tuition and associated costs for tax purposes.
What happens if my Social Security Number is not on file with the College?
College of DuPage must collect your accurate identification number in order to submit Form 1098-T with the Internal Revenue Service and to provide you with a statement. If you are not qualified to get a Social Security Number (SSN), your Individual Taxpayer Identification Number (ITIN) will serve as your identification number (ITIN). Providing incorrect SSN or ITIN will not result in denial of admission to the College; nevertheless, you may be liable to IRS civil fines of $50 if you do not provide a proper SSN or ITIN.
Please send the completed form to the Cashier’s Office no later than December 15 to avoid being charged late fees.
Please do not send the form by email.
Why is there no check mark in Box 8 (“at least half-time)?
If you did not complete a minimum of six credit hours during an academic term, box 8 will not be ticked.
Where can I learn more about the Lifetime Learning Credit?
The Lifetime Learning Credit reimburses eligible students for approved tuition and related expenditures that they have spent in the course of their education.
If you qualify for the credit, you can claim it for as many years as you choose. Visit this page for a general understanding of the Lifetime Learning Credit.
Where can I learn more about the American Opportunity Tax Credit?
The Lifetime Learning Credit can be used to reimburse eligible students for approved tuition and related expenditures. If you qualify for the credit, you can claim it for as many years as you choose. The Lifetime Learning Credit is explained in detail here.
How much can I claim on my taxes? How do I know what to put on my tax return?
The College is unable to provide you with tax advice. We comply with federal rules by presenting qualifying students with an IRS Form 1098-T in late January each year, as required by law. Please check with your tax expert if you require further information regarding your specific circumstances.
I lost my Form 1098-T. How do I obtain another copy?
If you gave your agreement to receive the form electronically, you may reprint the form by signing into myACCESS and selectingView My 1098-T FormsunderStudent Payment Information from the Student Payment Information section.
My address listed on the 1098-T has changed. Will this affect me?
Alternatively, if you are getting the 1098-T by mail, it will be delivered to the most current address that the College has on file for you. If your home address on file with the College is inaccurate, please notify the Office of Student Registration Services, located in SSC 2221, by January 12 so that we can make the necessary changes to our records. If you have chosen to receive your 1098-T electronically, the change in address will have no effect on you. The address listed on Form 1098-T is not important for the purpose of filing income tax returns with the IRS.
What is COD’s Tax Identification Number?
Its Federal Identification Number is 36-2594972, according to the Department of Defense. Form 1098-T has a line for “FILER’S federal identification number,” which contains this information.
Who do I contact if I have additional questions?
Please contact the Cashier’s Office if you have any more questions or concerns concerning your 1098-T. You may reach them by phone at (630) 942-2206 or by email at [email protected] We would like to remind you that the College of DuPage is not permitted to provide legal, tax, or accounting advice to students, and we are not liable for any actions you take as a result of your reliance on this material.
What is the fastest way to receive my Form 1098-T?
We strongly advise you to enroll in electronic delivery of your 1098-T. You will receive your tax form more quickly, and you will have access to examine all of your Form 1098-Ts in an electronic format. Please enter your consent on myACCESS by January 20th in order to ensure that you receive your 1098-T in electronic form. View the processes for giving your approval to receive your 1098-T via electronic means.
Visit the IRS website for further information on Form 1098-T and education tax credits, as well as these other related resources.
- Consult IRS Publication 970, Tax Benefits for Education
- Form 8863, Education Credits
- Form 1040 or 1040A Instructions
- Form 1098-T, Tuition Statement
- Or speak with a tax professional.
Room 2424 of the Berg Instructional Center (BIC) serves as the cashier’s office.
The phone number is (630) 942-2206 and is open Monday through Friday from 8 a.m. to 5 p.m. Hours are from 8 a.m. to 5 p.m. Monday through Friday. Cashiers can be reached by email at [email protected] or by fax at (630) 942-2909.
1098-T Frequently Asked Questions
Q: What is the purpose of the IRS Form 1098-T? A: The Form 1098-T is a tax document that colleges and universities are obligated to provide to certain students who have completed their studies. Amount paid by the student for what is referred to as qualifying tuition and associated costs (or “QTRE”) in a single tax year is reported in this section. Q: When will I receive my Form 1098-T? A: Form 1098-T will be mailed to you. The electronic version of your Form 1098-T will be available to you through theStudent Administration System on or by January 31st (or the next business day) at the latest.
When I look at my Form 1098-T, the figures don’t match up with the amounts I paid to UConn over the year.
As a reminder, the amount shown in Box 1 only represents amounts paid for qualified tuition and related expenses (QTRE) and does not include payments made for room and board (which is important), insurance (which includes health service fees), or parking (which is also important but is not considered mandatory education expenses for tax purposes).
- In the Spring semester, tuition is normally invoiced in November, therefore a student may have paid tuition for the Spring semester in 2017, despite the fact that classes did not begin until the following fall semester.
- Q: Do the costs for books appear on the 1098-T form?
- In order to decide if payments for books, equipment, or fees should be taken into account when filing your income tax returns and evaluating your eligibility for education tax credits or deductions, you should speak with your tax adviser about this.
- A: All semesters.
- Unlike Box 1 of Form 1098-T, Box 1 of Form 1098-T represents payments received during the calendar year for qualifying tuition and related expenditures, and it is not dependent on when classes were attended or when the fees were invoiced to the student account.
- Your Term Fee Bills may be found in the Finance area of the Student Administration System, which is accessible via the Student Homepage.
- What information is included on my Form 1098-T regarding my fellowship?
Form 1098-T is used to report activity that occurred throughout the calendar year.
As a graduate fellow, I am eligible to acquire health or dental insurance at a discounted rate.
In the absence of a qualified tuition and associated expenditure, insurance (including medical and dental) is not recorded on your Form 1098-T.
Q: I graduated in May of 2018, do I need to fill out a Form 1098-T for that year?
Tuition costs for the 2018 Spring semester were normally invoiced and posted in November 2017, and as a result, they would have been included in Box 2 of the 2017 Form 1098-T, which was sent to students.
Q: What should I do if I don’t have a Form 1098-T to complete my tax returns?
Students who obtain scholarships, grants, and/or fellowships in the prior year that are more than the sums they paid in QTRE are not obliged to receive a Form 1098-T from the University.
As a result, yourTerm Fee Billswill serve as the most reliable and accurate source of information on amounts paid for eligible education and related expenditures.
Q: According to my accountant, the University is required to issue me with a form 1098-T.
Unless otherwise authorized by the student, an enrolled student is considered a nonresident alien.
Students for whom you do not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement between an institution and the student’s employer or a governmental entity, such as the Department of Veterans Affairs or the Department of Defense, are eligible for financial aid.
- An earlier version of this form featured a monetary value in Box 2 that indicated the amount of qualifying tuition and related costs (QTRE) that the University charged to your student account for the calendar (tax) year.
- Q: My Social Security number appears to be incorrect on my Form 1098-T.
- In the event that your Social Security Number (SSN) is wrong, you must complete Form W-9 and present it in person or through fax to the Bursar’s Office at (860) 486-3307 in order to request that a new Form 1098-T be provided.
- Q: I am unable to access my Form 1098-T since I have graduated and have forgotten my login information.
- In order to access your Student Administration Account, please contact the Information Technology Services Department at (860) 486-4357 to have your NetID password changed.
Q: I’m not sure what I’m meant to do with this Form 1098-T. Can you help me? HELP! A: In the absence of specific tax advice, we are unable to assist. In addition to consulting with a tax professional, you may wish to look into IRS Publication 970.pdf.pdf for more assistance.
Form 1098- Office of the Bursar
- To view an example of Form 1098-T, as well as information on Form 1098-T and helpful links, please visit this page.
Effective Year 2019, the Form 1098-T will be issued forallstudents, including international students who may or may not be eligible for an education tax benefit.
What is the Form 1098-T and how does it work? Essentially, this is a tax document that is used to record eligible tuition and related costs in a particular tax year, and it is supplied to you as a reference to help you prepare your taxes. Its objective is to aid you in assessing whether or not you are eligible for a federal education tax credit on your federal income tax return. The Taxpayer Relief Act of 1997 allows certain taxpayers who pay qualified tuition and related expenses to an eligible educational institution to claim an American Opportunity Credit or a Lifetime Learning Credit against their federal income tax liability under the Internal Revenue Service’s tax code.
- In what time frame will I obtain my Form 1098-T?
- What method will I use to get my Form 1098-T?
- In order to have quick access to your 1098-T form as a currentstudent, you must first log into your Student Home Base in LionPATH and then click “Manage My Account/Make A Payment” from the “My Finances” area.
- To save a PDF copy of the Form 1098-T to your computer, click on “View” or “Save” after selecting “View.” You have the option of receiving the electronic version of the form if you so like.
- If you need to verify or amend your address, please do so by login into your LionPATH Student Home Base.
- As a previous student, I can say With your PSU See ID (for example, “xyz123”) and password, you can log into your student account on LionPATH and access your grades.
- as well as selecting “Manage My Account/Make A Payment” in the “My Finances” area of your Student Home Base once you have signed in.
- Alternatively, if you have forgotten your PSU Access ID or password, please utilize the “Forgot my User ID” or “Forgot my password” options on this page to recover your information.
- For all students, including overseas students, who may or may not be eligible for a tax benefit for their study, Penn State will send a 1098-T tax form.
- Forms 1098-T for domestic students will be available electronically through LionPATH beginning in 2016 and continuing into the future. International students will not be able to receive Form 1098-T for the reporting years 2016 – 2018 since those reporting years have already been completed. There will be no 1098-T forms available through LionPATH for the 2015 tax year or preceding years. Please submit your request using the ” Contact ” option on our website, and be sure to pick the category “1098-T Form”
- Otherwise, we will not be able to provide you with a copy of the form.
To whom does the Form 1098-T provide information about the taxpayer? To comply with IRS regulations, Penn State discloses payments received for eligible tuition and related costs for the tax year ending December 31, 2021 in Box 1 of this document. Box 2 has been left purposely blank. Please Keep in Mind: According to IRS tax form instructions, education credits and deductions for a taxpayer’s 2021 individual tax return are based on qualifying educational costs incurred during the calendar year 2021.
Box 4.Indicates whether or not an adjustment was made for qualifying tuition and related expenditures that were reported on a prior year Form 1098-T in the current year.
To report a reduction in your education credit or tuition and fees deduction, look up the term “recapture” in the index to Pub.
Box 5 displays the total amount of all scholarships or awards that have been administered and processed by the qualified educational institution.
A student who includes part or all of the educational help obtained in the year it is received may be able to improve the combined value of an education credit and certain educational aid (including Pell Grants) received in the year in which they are received.
Box 6.Contains information on scholarship or grant changes made in a previous year.
It is possible that you may be required to file an updated income tax return (Form 1040X) for the previous year.
For information on how to report these amounts, see Pub.
Check this box if your course of study is deemed to have a regular full-time burden of at least half the average full-time workload at the reporting institution.
An insurer’s reimbursement or refund for eligible tuition and related expenditures is shown in Box 10.
The total amount of reimbursements or refunds you get for the calendar year may diminish the amount of any education credit you are eligible to claim for the year in which they were received (may result in an increase in tax liability for the year of the refund).
The educational benefits received by veterans are not taxed.
The fact that veteran benefits are reported on the Form 1098-T does not imply that those benefits are taxable.
In the event that I have issues about my eligibility for the American Opportunity Tax Credit, the Lifetime Learning Tax Credit, or the Tax Deduction for Higher Education Expenses, who should I contact?
Penn State is unable to give specific tax advice and will not be liable for any damages of any type arising out of the use of this material or its distribution. As a result, you should check with a tax professional about your individual circumstances before proceeding.
- Concerning Form 1098-T, the Tuition Statement
- Instructions for completing Forms 1098-E and 1098-T (2021) are as follows:
- How and why you should care about Form 1098-T
- Form 8863 is used to record information about a person. For those who are qualified for the Education Credits, a completed version of this form must be submitted with your tax return
- The IRS Interactive Tax Assistant is a tool that allows you to prepare your taxes online. Tax Credits and Deductions, as well as taxable income, are discussed in this interactive tool to assist you in finding answers to typical tax issues. IRS Home Page
- Determining Your Tax Status as an Alien