Tax Form 1098-T

Overview

All students who were enrolled and paid for qualifying tuition and related expenses for the calendar year 2018 will be mailed a 1098-T form by 1/31/19.  In order to provide this information the student would need to have their social security number on their student record kept by the Assumption College Registrars’ office.  The 1098-T will be mailed to the student’s home address on record with the Assumption College Registrar’s office.  The student can verify their social security number and address information and make any needed changes by contacting the Assumption College Registrars’ office.

When you receive your tax document in 2019 for the 2018 tax year, it will look slightly different than it has in prior years. Congress and the IRS eliminated the option for colleges and universities to report the “amounts billed” on form 1098-T. Colleges and universities must now report the “amounts paid” for qualified tuition and expenses. This change went into effect for the 2018 tax year.

Why the change?

Based on a report compiled by the US Inspector General for Tax Administration, it was determined there were a large number of errors as it relates to educational tax credits. The majority of these errors were caused by confusion regarding Box 2 (amounts billed) reporting. This change eliminates this confusion and the potential for inaccuracies on 1098-T forms going forward.

So, what does that mean for you?

This means that you will no longer see any amounts in Box 2 (Amounts billed for qualified tuition and related expenses) on your 1098-T form. You will, however, see an amount in Box 1 (Payments received for qualified tuition and related expenses).  

All eligible educational institutions, such as a college or university in which you are enrolled, and an insurer who makes reimbursements or refund of qualified tuition and related expenses to you, must furnish this statement to you.  You or the person who claims you as a dependent may be able to claim an education credit on Form 1040 or 1040A for qualified tuition and related expenses.  Assumption College will be reporting Box 1 Payments received for qualified tuition and related expenses along with the amount of any scholarships or grants (box 5) that were applied to the student’s account during the calendar year.

Assumption College can only answer questions on how the form was prepared.  Questions regarding your eligibility should be directed to your tax preparer.  For more information about any education credits see IRS Publication 970 Tax Benefits for Education, Form 8863, Education Credits the form 1040 or 1040A.  These can be found at www.irs.gov.

Frequently Asked Questions

What is IRS Form 1098-T?
A 1098-T is a statement of payments received for qualified tuition and related expenses posted to your student account and grants or scholarships received during the calendar year.  The 1098-T does not indicate your eligibility for tax benefits; rather, it provides you with information about your account which you or your tax preparer may use to determine your education tax benefit eligibility.  For more information on these credits visit the IRS website.http://www.irs.gov/uac/Tax-Benefits-for-Education:-Information-Center.

What tax benefits am I eligible for?
The 1098-T does not indicate your eligibility for tax benefits.  You may be eligible for certain tax incentives even if you are not issued a 1098-T.  You may receive a 1098-T but not qualify for education tax benefits.  The 1098-T provides information that you may use to determine your eligibility for tax incentives.  For assistance in determining your eligibility for education tax benefits, consult IRS Publication 970 and /or your tax preparer.