Last year, the Internal Revenue Services (IRS) has made changes to the requirements that schools, colleges and universities must follow for reporting billing and payment information on the IRS tax form 1098T. Under the old rules schools had an option of using either the Box 1 reporting method which reports the aggregate amount of payments received by the institution for qualified tuition and fees, or Box 2 method which reports on the aggregate amount billed. Eckerd College has always reported on the Box 2 method. Now, beginning in tax year 2018 which runs from January 1, 2018 – December 31, 2018, only the qualified tuition and fees actually paid can be reported on Form 1098T. Box 2 reporting will not be an option for the 2018 1098T form. Fortunately, the IRS is offering some reprieve this year to allow institutions to update their procedures and software. The college is currently reviewing all processes and will make any necessary changes to insure compliance for the calendar year 2018. Additional information that may be helpful in addressing the changes will be posted as it becomes available. The 2018 spring semester bill is now available and the payment due date is January 2, 2018. Please be aware that if you make your payment in calendar year 2017 (prior to due date), your payment will not appear on your 2018 tax form 1098T. If you have questions regarding the 1098T tax form and how the form relates to you please contact a tax professional for advice. You may find additional information regarding the tax form 1098T by visiting the IRS website at www.irs.gov.
Important: Form 1098T and Education Tax Credits
Educational institutions are required by law to report to students the amount of qualified tuition and related expenses (fees) billed to them or paid by them during the calendar year. This information is provided on a 1098T form which is mailed to the student’s home address in the month of January. Eckerd College has chosen to report the total amount billed during a calendar year (box 2), the form also includes total scholarships, grants, tuition remission and discounts that are administered by Eckerd College (box 5).
The purpose of the 1098T form is to help the student determine whether they are eligible to claim an Education Tax Credit on their individual income tax returns. You are not required to report any of the information located on the 1098T on your tax return but you may use this information to claim an Education Tax Credit.
The Federal government has two Education Tax Credits available, the Hope Credit and the Lifetime Learning Credit. These credits are designed to reduce the income taxes paid by those students who pay their college tuition and fees. Each tax credit has different requirements which must be met to claim the credit. You may find the requirements and additional information regarding the Education Tax Credits from the IRS website at www.irs.gov or by telephone at 1-800-829-1040.
Educational institutions are not required to provide the 1098T form to:
- Students who enroll in courses which no academic credit is received (this includes the Continuing Education programs)
- Nonresident alien students
- Students whose qualified tuition and related expenses are entirely waived or paid with scholarships or grants
If you lost or need another copy of the 1098T form you may request this by sending an email to email@example.com, or, call the Bursar’s office at 800-456-9009, ext. #8321 or local 727-864-8321.
If you have questions and need assistance in determining whether you are eligible to claim an Education Tax Credit, please contact a tax professional to assist you with this. You may contact the IRS at their website or by telephone at 1-800-829-1040.
Eckerd College will not provide income tax advice.
Instructions for Students
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 in 2012. 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.
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 in 2012. 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.
Student’s identification number. For your protection, this form may show only the last four digits of your social security number (SSN). Individual taxpayer identification number (ITIN), or adoption taxpayer identification number (ATIN). However, the issuer has reported your complete identification number to the IRS and, where applicable, to state and/or local governments.
Account number. May show an account or other unique number the filer assigned to distinguish your account.
Box 1. Shows the total payments received in 2012 from any source for qualified tuition and related expenses less any reimbursements or refunds made during 2012 that relate to those payments received during 2012.
Box 2. Shows the total amounts billed in 2012 for qualified tuition and related expenses less any reductions in charges made during 2012 that relate to those amounts billed during 2012.
Box 3. Shows whether your institution changed its method of reporting for 2012. It has changed its method of reporting if the method (payments received or amounts billed) used for 2012 is different than the reporting method used for 2011. You should be aware of this change in figuring your education credits. The credits are allowable only for amounts actually paid during the year and not amounts reported as billed, but not paid, during the year.
Box 4. Shows any adjustment made for a prior year for qualified tuition and related expenses that were reported on a prior year Form 1098-T. This amount may reduce any allowable education credit that you claimed for the prior year (may result in an increase in tax liability for the year of the refund). See “recapture” in the index to Pub. 970 to report a reduction in your education credit or tuition and fees deduction.
Box 5. Shows the total of all scholarships or grants administered and processed by the eligible educational institution. The amount of scholarships or grants for the calendar year (including those not reported by the institution) may reduce the amount of the education credit you claim for the year.
Box 6. Shows adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. You may have to file an amended income tax return (Form 1040X) for the prior year.
Box 7. Shows whether the amount in box 1 or 2 includes amounts for an academic period beginning January-March 2013. See Pub. 970 for how to report these amounts.
Box 8. Shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at the reporting institution. If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the American opportunity credit. You do not have to meet the workload requirement to qualify for the lifetime learning credit.
Box 9. Shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential.
Box 10. Shows the total amount of reimbursements or refunds of qualified tuition and related expenses made by an insurer. The amount of reimbursements or refunds for the calendar year may reduce the amount of any education credit you can claim for the year (may result in an increase in tax liability for the year of the refund).