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Frequently Asked Questions About the 1098-T Tax Form

 

What is the 1098-T form?

The 1098-T form is used by eligible educational institutions to report information about their students 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’s identification number (TIN), enrollment and academic status. Beginning with 2003, educational institutions must also report amounts to the IRS pertaining to qualified tuition and related expenses, as well as scholarships and/or grants, taxable or not. A 1098-T form must also be provided to each applicable student. This form is informational only. It serves to alert students that they may be eligible for federal income tax education deductions or credits. It should not be considered as tax opinion or advice. While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax deduction or credit. There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.

 

Why did I receive a 1098-T and what am I supposed to do with it?

In January of each year, Scripps College sends 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 deductions or credits. Receipt of Form 1098-T does not indicate eligibility for a deduction or tax credit. To determine the amount of qualified tuition and fees paid, and the amount of scholarships and grants received, a taxpayer should use their own financial records. NOTE: It is up to each taxpayer to determine eligibility for the credits and how to calculate them.

 

I did not receive a 1098T form, why?

Scripps was not required to send you a form.

 

Did you send a copy of this form to the IRS?

Yes. Section 6050S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires institutions to file information returns to assist taxpayers and the Internal Revenue Service in determining eligibility for the Hope and Lifetime Learning education tax credits. Forms are mailed at the end of January of each year for the previous tax year.

What educational expenses are considered as qualified tuition and related expenses?

Qualified tuition and related expenses for calculating tax credits/deductions: •

  • Tuition fees required for enrollment or attendance at an eligible educational institution (any accredited public, nonprofit, or proprietary postsecondary institution—including Scripps College)
  • Books, supplies and equipment needed for a course of study

For more information about qualified educational expenses please go to: http://www.irs.gov/publications/p17/ch35.html#d0e74760.

 

Why isn’t there an amount in box 1?

The IRS instructs institutions to report either payments received (Box 1) or amounts billed for qualified tuition and related expenses (Box 2) on the 1098-T. Once an institution has selected one of these options, they cannot change reporting methods between calendar years without IRS permission. Scripps College reports qualified tuition and related expenses that were billed during the tax year (Box 2).

 

What are the Hope Credit and the Lifetime Learning Credit and what are allowable tuition and fee tax deductions for each?

For an overview of the Hope Credit, Lifetime Learning Credit, and allowable tuition and fee tax deductions, visit https://www.irs.gov/individuals/education-credits-questions-and-answers. Chapter 35 of IRS Publication 17 provides a very clear explanation of the eligibility requirements and filing instructions for the Hope Credit and the Lifetime Learning Credit. You can access an electronic copy of this chapter at http://www.irs.gov/publications/p17/ch35.html. Publication 17 includes a number of useful real-life examples. Publication 970 explains tax benefits for education: http://www.irs.gov/publications/p970/index.html.

 

What is the American Opportunity Credit?

For more information, please visit http://www.irs.gov/publications/p17/ch35.html.

 

My address listed on the 1098-T has changed. Will this affect me?

No. The address shown on Form 1098-T is irrelevant for IRS income tax filing purposes. The single most important information on the form is your Social Security Number.

 

How do I get a reprint of my 1098-T form?

If you did not receive a 1098-T due to a change of address, or you misplaced the form, please contact the Student Accounts Office at 909-621-8259.

 

How can I get an itemized listing of my financial activity that is on my 1098-T form?

Calendar year account statements are available by request.

 

What if I still have questions?

If you have additional questions/concerns, you can reach us by Phone: 909-621-8259

 

Note: Please be advised that Scripps College does not provide legal, tax, or accounting advice to students and we are not responsible for any use you make of the information in this publication.