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Bursar's Office

Division of Business and Finance

Explanation of IRS Form 1098-T


  • The IRS Form 1098-T is an information form filed with the Internal Revenue Service.
  • The IRS Form 1098-T that you received reports amounts paid for qualified tuition and related expenses, as well as other related information.
  • You, or the person who may claim you as a dependent, may be able to take either the tuition and fees deduction or claim an education credit on Form 1040 or 1040A for the payments made for qualified tuition and related expenses paid during the calendar year.
  • There is no need to attach Form 1098-T to your tax return.
  • All information and assistance that East Tennessee State University can provide to you is contained in this notice.
  • 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.
  • See IRS Form 8863 or IRS Publication 970 for more information.

Payments made for qualified tuition and related expenses billed.
Box 1 of Form 1098-T reports the payments made for qualified tuition and related expenses billed to you during the calendar year. Qualified tuition and related expenses are sometimes referred to as qualified education expenses, although the terms are not always interchangeable. For purposes of the Form 1098-T provided by East Tennessee State University, the following categories of charges are included or not included in qualified tuition and related expenses:
 

Qualified Tuition and Related Expenses

Included

Not Included

  • In State Maintenance Fee
  • Out of State Tuition
  • Graduate and Undergraduate Program Service Fee
  • Applicable Course Fees
  • Online Fees
  • TN eCampus Maintenance Fees
  • TN eCampus Online Fees
  • Late Charges
  • Application Fees
  • Health Insurance Premiums
  • ETSU Payment Plan Late Fee
  • Room and Board Charges
  • Course Related Books and Equipment
  • Registration fees paid for non-credit courses

East Tennessee State University is required to report payments made (Box 1) on qualified tuition and related expenses that were billed during the calendar year. In general, qualified tuition and related expenses are considered to be billed when you register for classes.

Qualified Tuition and Related Expenses Reduced by:

  • Current year reductions in billed amounts for semesters billed during the calendar year. For example, a reduction due to withdrawal from classes. The reductions may or may not have resulted in a refund, depending on whether the billed amounts had been paid prior to the reduction.
  • Tuition charges waived during the calendar year due to the student's status as a benefits eligible ETSU faculty or staff member or the spouse or dependent of an ETSU faculty or staff member.
  • Tuition charges waived during the calendar year due to the student's status as an eligible research or teaching assistant/associate.

The amount shown in box 2 for qualified tuition and related expenses billed during the calendar year may represent an amount that is different from the amount actually paid during the calendar year, although for many students the amounts will be the same. Under section 25A of the Internal Revenue Code and the 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.

Adjustments made for a Prior Year
Box 4 of Form 1098-T reports adjustments made to qualified tuition and related expenses reported on a prior year Form 1098-T in Box 2. The amount reported in Box 4 represents a reduction in tuition billed during a prior calendar year.

Scholarships or Grants
Box 5 of Form 1098-T reports the total of scholarships or grants administered and processed by the ETSU Financial Aid and Scholarship Office during the calendar year. The amount reported in Box 5 does not include:

  • Tuition waivers provided during the calendar year due to the student's status as a benefits eligible ETSU faculty or staff member or the spouse or dependent of an ETSU faculty or staff member.
  • Tuition waivers provided during the calendar year due to the student's status as an eligible research or teaching assistant/associate.
  • Student loans, for example subsidized, unsubsidized, PLUS, Perkins, and alternative loans.
  • Work-study.
  • Scholarships, grants, reimbursements or other types of sponsorships not administered or processed by ETSU.

Adjustments to Scholarships or Grants For a Prior Year
Box 6 of Form 1098-T reports adjustments made to scholarships or grants reported on a prior year Form 1098-T in Box 5. The amount reported in Box 6 represents a reduction in scholarships or grants reported for a prior calendar year. The amount reported in Box 6 for adjustments to scholarships or grants may affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. See IRS Form 8863 for how to report these amounts.

Additional Information Reported
There are three additional information boxes that may have a check mark in them.

Box 7 indicates, if checked, that Box 2 includes amounts for an academic period beginning in the next calendar year. For example, if you registered for the upcoming Spring semester during November or December, this box will be marked.

Box 8 shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at ETSU for at least one academic period during the calendar year. If this box is marked, you may meet one of the requirements for the American Opportunity tax credit, lifetime learning credit or tuition and fees deduction.

Box 9 shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential.

Attaching Form 1098-T to Your Tax Return
You are not required to attach IRS Form 1098-T to your tax return. The IRS Form 1098-T is not like the IRS Form W-2 obtained from your employer, which is required to be attached to the tax return filed with the IRS. The primary purpose of the IRS Form 1098-T is to let you know that ETSU has provided required information to the IRS to assist them in determining who may be eligible to claim the tuition and fee deduction or an education credit.

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