General Questions
- What is IRS Form 1098-T?
- An eligible educational institution, such as a college or university in which you are enrolled, and an insurer who makes reimbursements or refunds of qualified tuition and related expenses to you must furnish this statement to you. You, or the person who can claim you as a dependent, may be able to claim an education credit on Form 1040 or 1040A, only for the qualified tuition and related expenses that were actually paid during the reporting tax period. To see if you qualify for the credit, see Pub. 970, Tax Benefits for Education; Form 8863, Education Credits; and the Form 1040 or 1040A instructions.
- How do institutions report payments received?
- Institutions may report either payments received during the calendar year in box 1 or amounts billed during the calendar year in box 2. The amount shown in box 1 or 2 may represent an amount other than the amount actually paid during the reported tax period. Your institution must include its name, address, and information contact telephone number on this statement. It may also include contact information for a service provider. Although the filer or the service provider may be able to answer certain questions about the statement, do not contact the filer or the service provider for explanations of the requirements for (and how to figure) any education credit that you may claim.
- Why did I receive Form 1098-T?
- Your school is required to send you this form so that you can use it to determine if you are eligible and what dollar amount you can claim for either the American Opportunity Credit or Lifetime Learning tax Credits.
- What is Form 1098-T used for?
- The information on the 1098-T form is provided to assist each Student/Taxpayer in preparing the IRS FORM 8863, which is used to claim the American Opportunity or Lifetime Learning Credits. Once complete, the 8863 should be attached to the Student/Taxpayers return to determine eligibility and the amount of the Education credit (if any) that he/she may be entitled to on their Individual Income Tax Return.
- Do I have to use Form 1098-T?
- No, if you are not paying taxes or your income is too high to qualify, you do not have to do anything with this form. If you think you received it in error, please disregard it.
- Can my school or service provider give me tax advice?
- Neither your school nor service provider can offer tax advice regarding your tax forms. If you have any questions about if or how much interest you can deduct, you should consult with a qualified tax professional or contact the IRS Taxpayer Assistance line at 1-800-829-1040. The IRS web site has many documents concerning TRA-97, including some self-help topics for tax filers.
Form Generation & Access
- When can I expect to receive my 1098-T form?
- The IRS tax laws state that all tax documents must be mailed by January 31st. Your service provider has until January 31st to send out all 1098 tax documents. Please log in to your student portal periodically to see if your tax form is available.
- How do I access my 1098-T form if I did not receive one?
- Access your 1098-T statement online by signing into your student portal.
Claiming a Tax Credit
- What is the American Opportunity Credit?
- If you have questions about the American Opportunity Credit, please see the IRS Publication 970: Chapter 2 - American Opportunity Credit.
- What is the Lifetime Learning Credit?
- If you have questions about the American Opportunity Credit, please see the IRS Publication 970: Chapter 3 - Lifetime Learning Credit.
Information Regarding Form 1098-T
- What if the SSN on my tax form is incorrect?
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To correct your Social Security Number ("SSN") on your tax form, you must fill out
Form W-9S and return it to your school.
- What if the amounts on my tax form are incorrect?
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- If Box 7 is checked the student’s 1098-T is for all qualified tuition charges or payments received or made for periods beginning January of the reporting tax period until March of the following year.
- Box 1 and Box 2 do not and should not include amounts for courses where no course credit is issued or any courses involving sports, games and hobbies. The only exception to this is if the course(s) are part of the student’s degree program or were taken to improve a job skill.
- Box 1 and Box 2 do not include: room, board, insurance, medical expenses (including student health fees), transportation or personal expenses incurred while attending college.
- You will not receive a 1098-T in the following cases:
- Courses for which no academic credit was offered even if you are enrolled in a degree program
- You are a nonresident alien and did not request that your school provide you with a 1098-T
- Your tuition was paid in full by scholarships and/or grants
- Your tuition was paid by an agreement between your school and an employer or by the government like the Department of Veteran’s Affairs or the Department of Defense
If after reading the above-mentioned information the student disputes the amount reported on the 1098-T, please contact your school directly.