Education Tax Credits - IRS Form 1098T
ETSU sends 1098-T information to students by January 31st of each year. The form includes financial information, such as tuition charges, scholarships received and payments made, which you may need for either education credits or a tuition deduction on your federal tax returns. The IRS requires ETSU to report Box 1 payments made on qualified charges billed. The Box 1 amount will cap at the amount of qualified tuition and related fees with a transaction date during the tax year. The IRS requires that ETSU provide the 1098-T statement to you to use in completing IRS Form 8863 unless one of the situations mentioned below exists.
- 1098T - Requirements
You will not receive a 1098-T form if one of the following occur:
- Box 5 – Scholarships and Grants are greater than Box 1 – payments received for qualified tuition and related expenses.
You are classified as a Non-Resident Alien
- 1098T - Box Descriptions
Understanding 1098-T Tuition Statement
- Box 1: Payments received for qualified tuition and related expenses
- Box 2: Amount billed for qualified tuition and related expenses (no longer reported)
- Box 3: Checkbox for Change of Reporting Method
- Box 4: Adjustments Made for Prior Year (New reporting requirement for 2019-1098-T)
- Box 5: Scholarships or Grants
- Box 6: Adjustments to Scholarships or Grants for a Prior Year (New reporting requirement for 2019-1098-T)
- Box 7: Checkbox, amounts for an Academic Period Beginning in January through March in the future academic year.
- Box 8: At least half-time student
- Box 9: Graduate student
- Box 10: Insurance Contract Reimbursements or Refunds
- 1098T - FAQs
- 1098-T Tax Information Questions & Answers
Why did ETSU send a '1098-T' statement to me?ETSU sends a 1098-T form to students with payments made on qualified tuition and fees (Box 1) in excess of scholarships and grants (Box 5). The 1098-T is used to report qualified tuition, fees and related expenses that may be eligible for Education tax credits or tax deductions.
Does that mean I am eligible to claim the amount in Box 1 as a tax credit?Not necessarily. Contact your tax preparer or financial advisor with questions concerning your eligibility for tuition tax credits or tax deductions. You may also review the IRS website or call their toll-free number (1-800-829-1040) for additional information.
Who can claim the credits?Contact your tax preparer or financial advisor with questions concerning your eligibility for tuition tax credits or tax deductions. You may also review the IRS website or call their toll-free number (1-800-829-1040) for additional information.
What are the payments made on qualified tuition and related expenses amount in Box 1?It is the total of payments made on Maintenance Fees, Out-of-State Tuition, and Program Service Fee and other required fees billed during the calendar year.
What are the qualified grants and scholarships amounts?It is the total Grants and Scholarships that were applied to your account during the calendar year. Amounts for these items generally offset and reduce the amount of qualified tuition and fees eligible for tax credit. In general, scholarships and grants are nontaxable to the extent that they are used to pay tuition and fees. When nontaxable, they offset the amount of tuition and fees eligible for tax credit.
Can I claim other fees paid (housing rent, meal plan, books and supplies) for the tax credit?Amounts for these items generally do not qualify for tax credits.
Should I mail my copy of 1098 to the IRS?You should consult your tax advisor or Pub. 970, Tax Benefit for Higher Education for more information on documenting the tax credit.
Whom should I call if I have further questions regarding these educational benefits for taxpayers?ETSU is providing this information to help you determine if you may be eligible for these educational benefits for taxpayers. However, ETSU may not provide tax advice or make a determination regarding your eligibility to claim these benefits. Contact the IRS, call 1-800-829-1040, or your tax advisor for questions regarding eligibility to claim these credits.
How can I access my 1098-T?You can access your 1098-T by logging into Goldlink and then clicking the Account drop-down menu from the Student tab. Then click View Billing Statement and 1098-T under Basic Tools.
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|
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 on the day you register for classes, if fees are being processed by ETSU. Example: Registering for spring classes in November or December of tax year. Maintenance, tuition and fees are applied when you registered and are considered qualified charges for the tax year even though the semester begins in the future.
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.
Adjustments made for a Prior Year
Box 4 of Form 1098-T reports reimbursements or refunds of qualified tuition and related expenses made in 2019 that relate to payment received that were reported in the prior year. Reductions in charges made for qualified tuition and related expenses made during the calendar year that relate to amounts billed that were reported for the prior 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.
- 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 of the previous year, 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.
The above information was developed to assist taxpayers with understanding Form 1098-T. Content displayed on this webpage does not represent an IRS document, nor does it represent tax advice from East Tennessee State University and should not be construed as tax advice. The amounts and calculations used to determine the credit are the decision of the taxpayer after consideration of relevant IRS regulations, IRS Publication 970, and IRS Form 8863. For more information refer to IRS Pub. 970-Tax Benefits for Higher Education or consult your tax consultant.