1098 T: How to Get Another Return on All That Tuition!
Using a Tuition Statement IRS Form 1098 T to Claim Tax Deductions
Who needs to file the Form 1098 T?
Eligible educational institutions must file this form with the IRS for each enrolled student for whom a reportable transaction is made. Taxpayers who paid tuition and qualified related expenses should receive a copy of the Form 1098-T (Copy B) from the educational institution. Information from the Form 1098-T is reported on the student’s tax return, or the tax return of the person who paid the tuition and other qualified related expenses.
What is the purpose of the Form 1098-T?
The purpose of the Form 1098 T is for an eligible educational institution to report tuition payments and other qualified related expenses for enrolled students, to the IRS. As it relates to the taxpayer, the purpose of the form is to allow the student, or the person who paid the tuition and other qualified related expenses, to claim a deduction for those payments on his or her tax return.
Is the Form 1098 T accompanied by other forms?
If students have received a student loan, the Form 1098-T should be accompanied by the Form 1098-E, which is used to report student loan interest paid. In some cases, students may also qualify for educations credits, such as the American Opportunity Credit or the Lifetime Learning Credit. If this is the case, the Form 8863 is also completed and attached to the tax return (Form 1040).
When is the Form 1098-T due to the IRS?
The Form 1098 T must be filed by the institution for each student who is enrolled, typically 30 days after the first day of the academic period, or either one of the other two methods mentioned under Academic Period, located on page 3, of the instructions.
For the taxpayer, information from the Form 1098-T is reported on his or her tax return,e. Copy A of the form is issued to the IRS, Copy B is issued to the student, and Copy C is the copy for the institution.
How is the Form 1098-T Completed?
A5: The left side of the Form 1098 T is where information relating to the filer (educational institution), and the student is shown. Following is the information that goes into each of the boxes on the form.
Box 1: Payments received for qualified tuition and related expenses from the student.
Box 2: Amounts that the institution billed the student for relating to qualified tuition and related expenses.
Box 3: Relates to the institution’s reporting method.
Box 4: Adjustments made for a prior year by the institution.
Box 5: Amount of scholarships and grants received by the student.
Box 6: Adjustments to scholarships or grants for a prior year.
Box 7: Check the box regarding amounts for an academic period for a future year.
Box 8: Check the box if at least half-time student.
Box 9: Check the box if graduate student.
Box 10: Insurance contract reimbursement/refund.
For more detailed information on how to complete the Form 1098-T, check out the following video:
What is the mailing address for the Form 1098-T?
The Form 1098-T is an information return. The mailing address for the form depends on which state the educational institution is located in. Refer to the IRS publication titled Certain Information Returns for more detailed information relating to the mailing addresses.