1098-T: Frequently Asked questions
1098-T: Frequently Asked Questions
Caution: Springfield College and its personnel cannot act as an individual’s tax advisor. This information is for general guidance ONLY.
What is the Form 1098-T?
Why did I receive a 1098-T and what am I supposed to do with it?
Why didn’t I receive a 1098-T?
What do the boxes on the 1098-T mean and why is there nothing in Box 1?
What educational expenses are considered as qualified tuition and related expenses?
I paid my qualified tuition and related expenses with student loans. Can I still claim a tax credit?
How can I see the activity in my student account for the calendar year?
The 1098-T is used to report information to the IRS as required by the Taxpayer Relief Act of 1997. Eligible educational institutions are required to submit the student’s name, address and taxpayer identification number, enrollment and academic status, amounts pertaining to qualified tuition, related expenses, and scholarships and/or grants, taxable or not. This form is for informational purposes only. While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all the information needed to claim a tax credit.
In January of each year, Springfield College mails an IRS Form 1098-T to all students who had qualified tuition and other related educational expenses billed to them during the previous calendar year. This form is informational only and should not be considered as tax opinion or advice. It serves to alert students that they may be eligible for federal income tax education credits. Receipt of Form 1098-T does not indicate eligibility for the tax credit. To determine the amount of qualified tuition and expenses paid, and the amounts of scholarships and grants received, a taxpayer should use their own financial records. It is up to the taxpayer to determine eligibility for the tax credits.
Springfield College does not issue a Form 1098-T if financial aid equals or exceeds tuition charges, or if the student is enrolled in non-credit classes.
Box 1 - This box will be blank. When the IRS first required amounts to be reported on the 1098-T it allowed eligible educational institutions to choose to report payments received, or amounts billed for qualified tuition and related expenses. Springfield College chose to report amounts billed. IRS permission would be required to change the reporting method.
Box 2 - The amount billed to the student for qualified tuition and related expenses during the calendar year, less any related reimbursements or refunds. This amount may be different from the amount actually paid during the calendar year. Under section 25A of the Internal Revenue Code and associated regulations, a taxpayer may take a tuition and fee deduction or claim an education tax credit only with respect to qualified tuition and related expenses actually paid during the calendar year.
Box 3 - This box will not be checked since Springfield College did not change its method of reporting for the calendar year.
Box 4 - The amount of any adjustments made to qualified tuition and related expenses reported on a prior year Form 1098-T. This amount may reduce any allowable education credits students may claim for the prior year. See IRS Form 8863 or IRS Publication 970 for more information.
Box 5 - The total amount of scholarships or grants administered and processed by Springfield College during the calendar year.
Box 6 - The amount of any adjustments made for prior year scholarships or grants. This amount may affect the amount of any allowable tuition and fees deduction or education credit students may claim for the prior year. See IRS Form 8863 or IRS Publication 970 for more information.
Box 7 - If checked indicates that the amount reported in Box 2 includes amounts billed for an academic period beginning in the next calendar year. See IRS Publication 970 for more information.
Box 8 - Indicates whether students are considered to be carrying at least one-half the normal full-time workload for their course of study at Springfield College.
Box 9 - Indicates whether a student is considered a graduate student.
Box 10 - This box will be blank.
Qualified tuition and related expenses include undergraduate and graduate tuition, and student activity fees. The cost of course related books and supplies, may qualify in certain circumstances.
Expenses that do not qualify include room and board, insurance, medical expenses, and various fees and charges.
See IRS Form 8863 or IRS Publication 970 for more information.
Loan funds should be considered in the same manner as cash payments. The credit is claimed in the year in which the expenses are paid, not in the year in which the loan is repaid.
Students can see the activity in their student account by logging into PrideNET and then going to “My CASHNet Statement.”
Springfield College cannot provide tax advice. Individuals should consult their tax professional to find out more about their eligibility for tax credits and/or the taxability of your scholarships. Information may also be obtained at the Internal Revenue Service website at irs.gov.