FAQ on IRS Form 1098-T
1. What is Form 1098-T?
A college or university that received qualified tuition and related expenses on your behalf is required to file Form 1098-T with the Internal Revenue Service (IRS). A copy of Form 1098-T must be furnished to you. The information being reported to the IRS verifies your enrollment with regard to certain eligibility criteria for the American Opportunity tax credit (formerly the Hope Credit), the Lifetime Learning tax credit, and Tuition and Fees deduction for qualified higher education expenses. However, the enrollment information by itself does not establish the eligibility for either credit or deduction.
2. Why are qualified payments not listed in Box 1 of the 1098-T?
The IRS requires the reporting institution to report either amounts billed for qualified expenses or amounts paid for qualified expenses. Bloomsburg University has elected to report on amounts billed for qualified expenses (charges). When preparing your tax return, you must use amounts paid to calculate your deduction (see Publication 970 at http://www.irs.gov/publications/p970/index.html).
3. What is included in Box 2?
Included in Box 2 are amounts billed for qualified tuition and related expense. Qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible education institution less any waiver that has been applied to your account. Box 2 of your 1098-T includes as qualified education expenses following fees: tuition, academic enhancement fee, student technology fee, student union fee, community activities fee, transcript fee, student union operating fee, paper printing fee, recreation center fee, orientation fee, and parking decal. Qualified education expenses do not include insurance, medical expenses (including the health services fee), room and board, transportation fee, or similar personal, living and family expenses.
4. There is an amount in box 5 of my 1098-T. What do I do with this?
Box 5 includes Scholarships or Grants administered and processed during the calendar year. This includes: PHEAA, Pell, and SEOG.
5. Which semesters are included on my 1098-T?
Generally, the semesters which are included are Summer, Fall and Spring for the academic year. This amount may not be the correct amount to include on your income tax return. Bloomsburg University is reporting on amounts billed, you may only use amounts paid when preparing your tax return. Please consult IRS Publication 970 or your tax advisor to determine the correct amount for your income tax return. If any internal adjustments were made to the student account during 2012, this amount will appear in Box 4. Occasionally, payments or charges may not have posted correctly and our adjustments will be summarized here. This amount generally will not be included on your tax return because you are only eligible to report amounts paid to Bloomsburg University.
6. I believe I should have received a 1098-T, but did not. What should I do?
If a 1098-T was issued, you can access it via your ISIS account. If you cannot access your records and you feel you still should have received a 1098-T, please contact the Bloomsburg University Business Office at (570) 389-4013.
NOTE: Bloomsburg University cannot act in the capacity of tax advisors and will not offer tax advice. The University strongly recommends that you consult with your tax advisor for guidance on your specific tax situation. IRS Publication 970-Tax Benefits for Education can be downloaded from http://www.irs.gov/publications/p970/index.html