What is a 1098-T form?
IRS Form 1098-T assists the student/family in determining if they qualify for certain education related tax credits. The IRS requires educational institutions to file Form 1098-T for each enrolled student who has made payments for qualified tuition and related expenses during a calendar year.
Why should I elect to receive my 1098-T electronically?
Electronic delivery is immediate and more secure because your document can’t be lost in the mail.
How do I get a 1098-T from a previous year?
Forms are available for reprint on www.1098Tforms.com or at the Bursar’s Office.
What expenses qualify for credit?
In general, qualified tuition and related expenses for the education tax credits include tuition and required fees for the enrollment or attendance at eligible post-secondary educational institutions. The expenses paid during the tax year must be for: an academic period that begins in the same tax year or an academic period that begins in the first three months of the following tax year. Qualified expenses do NOT include housing, meals, insurance, health service fees, bookstore purchases, parking permits or fines, etc.
Why is Box 1 omitted in prior years?
In previous tax years, educational institutions were given the option to report either payments received in Box 1 or total qualified tuition and expenses billed in Box 2. Rogers State University had chosen to report charges, not payments received. Starting with tax year 2018, the university began reporting payments received on qualified tuition and related expenses (QTRE) in Box 1.
What changes were made to IRS Form 1098-T?
In previous years, IRS Form 1098-T included a figure in Box 2 that represented the qualified tuition and related expense (QTRE) the university billed to the student account for the calendar (tax) year. Due to a change to institutional reporting requirement under federal law, beginning with tax year 2018, the university reported in Box 1 the amount of QTRE paid during the year.
Depending on the student’s income (or family income, if the student is a dependent), whether the student is considered full or half-time enrolled, and the amount of qualified educational expenses for the year, the student may be eligible for a federal education tax credit. (Student or their family can find detailed information about claiming education tax credits in IRS Publication 970, page 9.)
The dollar amounts reported on the Form 1098-T may assist in completing the IRS Form 8863 – the form used for calculating the education tax credits that a taxpayer may claim as part of their tax return.
Rogers State University is unable to provide students or their families with individual tax advice, but should you have questions, please seek the counsel of an informed tax preparer or adviser.