What is the form 1098-T?
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.
Why did I receive a 1098-T and what am I supposed to do with it?
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.
Why didn’t I receive a 1098-T?
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.
Important IRS update:
The IRS is now requiring colleges and universities, starting with the 2018 tax year, to report in Box 1 (payments received). Previously, Springfield College was reporting in Box 2 for amounts billed.
What do the boxes on the 1098-T mean and why is there nothing in Box 2?
- Box 1 - Payments Received for Qualified Tuition and Related Expenses. The total amount of payments received for qualified tuition and related expenses from all sources during the calendar year. The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year that relate to the payments received for qualified tuition and related expenses during the same calendar year. The amount reported is not reduced by scholarships and grants reported in box 5. Include in this box the receipt of a payment of past-due qualified tuition or related expenses from a previous calendar year, but only if the educational institution previously billed the student for such amount(s).
- Box 2 - Starting with the 2018 tax year, this box will now be blank. 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.
What educational expenses are considered as qualified tuition and related expenses?
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.
I paid my qualified tuition and related expenses with student loans. Can I still get credit?
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.
How can I see the activity on my student account for the calendar year?
Students can see the activity on their student account by logging into PrideNET, going to My Profile/My Student Account, and clicking on the My Account Balances link. Clicking on one the semester balances will show all transactions sorted by semester.
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 also may be obtained at the Internal Revenue Service website.
What is the Springfield College federal identification number for tax filing purposes?
Our federal identification number is 04-2104329. It is included on all tax documents produced by the College (W-2, 1098-T, etc.).