If you paid tuition at a qualifying college or other higher education institution you will received a Form 1098-T: Tuition Statement. If you go to a college, university or vocational school that participates in the Department of Education programs for student aid they are qualified institutions. Form 1098-T will listed any expenses related to your education, this will help you figure out your eligibility for tax deductions and credits related to your education and tuition. If you are claimed as a dependent, your parent or guardian will be able to claim the credits and deductions.
What is on the 1098-T
You will get this form if you are responsible to pay for education expenses such as:
- Tuition
- Enrollment Fees
- Specific course work materials that were purchased from the school
If someone other than the student has paid for these expenses, such as a parent or guardian, the studied will still receive the 1098-T. Schools are required to send this form out by January 31st.
The school has two ways to report expenses you may have incurred. They can report either the amount that the student has actually paid in Box 1 of the 1098-T or they can report how much they will bill you in Box 2.
Scholarships and Adjustments
If you school adjusted your qualifying expense from the previous year’s 1098-T, this will be reported in Box 4.
If you received a scholarship or grant to help offset your education expenses this will be reported in Box 5. The amount in this box may reduce the total amount of qualifying expense that can be used towards credits and deductions.
If you have any amount listed in Box 6, this amount is adjustment the school has made to scholarship or grant reporting on a previous year’s 1098-T.
Additional Information
Any amounts listed in Box 7 of the 1098-T will refer to amounts listed in Box 1 or 2, if your academic term extends beyond the current years coverage for the 1098-T and roll overs into the first quarter of the next year.
Box 8 will be checked if you are considered a half time student, and Box 9 will be checked for graduate level students.
Some students may have a tuition insurance policy, which will cover some expense if the student has to withdraw from school for emergencies or medical reasons, and only after paying nonrefundable tuition. If this insurance policy was used Box 10 will show the amount the student received as reimbursements through this policy.
