1098-T Tax Information and FAQ’s
What is a 1098-T?
In 1997, the Taxpayer Relief Act established two education tax credits and a deduction for student loan interest. These credits are explained in detail in Publication 970 from the IRS.
The 1098-T form is a Tuition Payment Statement that includes information that schools are required to issue for the purpose of determining a student’s eligibility for education tax credits. The 1098-T form issued by the SH/BHSN reports the amount billed to you by SH/BHSN over the course of the previous calendar year, from 1/1/XX to 12/31/XX. This form is intended to assist you or your parents in preparation of your federal income tax return.
Note: Just because you receive a 1098-T does not automatically mean you qualify for a credit. If you have questions about how to compute your education tax credit, you should consult your tax professional or refer to the IRS. Your accountant, tax preparer, or the Internal Revenue Service (www.irs.gov) can best advise you in the utilization of this form when preparing your taxes.
What is the deadline for the 1098-T tax forms to be mailed to students?
By federal law, all forms must be postmarked by January 31.
What address will my 1098-T tax form be mailed to?
1098-T forms issued from BHSN will be mailed to the student’s address of record.
If I didn’t receive or I lost my 1098-T, where can I get another one?
You may request a copy from the Bursar.
How does this affect my taxes?
You may obtain information from your accountant, tax preparer, or Internal Revenue Service (www.irs.gov) about the Hope Credit and Lifetime Learning Credit for Higher education expenses.
Why didn’t I receive a 1098-T?
There are several possibilities:
- You attended BHSN in Spring, but you had enrolled and been billed in the previous calendar year, meaning the information was included in last year’s 1098-T.
- You do not have a valid permanent address on file at BHSN. To update your address, notify the Registrar’s Office at 508-941-7042.
- You do not have a valid SSN or TIN on file with BHSN.
How do I find the amount I paid ?
The BHSN reports tuition and qualified expenses on the 1098-T form. You may also reference your past tuition bills, cancelled checks, bank statements, or credit card statements to find these records.
How to read a 1098T
Box 1 : Payments received for qualified tuition and related expenses. This box will be left blank on all BHSN 1098-T forms. Schools may choose whether to report payments received or amounts billed; they are not required to report both amounts. BHSN has chosen to report qualified tuition and related expense amounts billed. Box 1 will therefore be left blank on all BHSN1098-T forms.
Box 2 : Amounts billed for qualified tuition and related expenses. The amount listed in this box will contain the sum of all tuition and mandatory fees billed to a student’s account during a calendar year, less any amounts by which tuition was reduced due to a reduction in course load or withdrawal. Decreases in amounts due on a student’s account due to scholarship payments, student payments or other payments are not included in the Box 2 amount. The amount included in Box 2 includes charges billed during the calendar (tax) year regardless of term or when charges were paid. Amounts billed to a student for health insurance, or other non-required fees will not be included in the Box 2 amount. For more information on what is considered an eligible or qualified expense, please speak with a tax preparer or visit the IRS website at www.irs.gov.
Box 3 : Box 3 shows whether the school has changed its method of reporting for the current year. This box will be left blank, since BHSN has not changed its current method of reporting from the previous year.
Box 4 : Adjustments made for a prior year. The amount in this box is the sum of all reductions in tuition (refunded or not) and qualified expenses billed, and therefore reported, in a prior year. This amount is reported as a positive number per IRS requirements. However, it is actually a decrease to the amount that was reported on a prior year 1098-T.
Box 5 : Scholarships and Grants This box contains the sum of all scholarships that the BHSN has administered and processed for the student’s account during the calendar year. Scholarships that pay for tuition (qualified scholarships) as well as for books and other expenses (non-qualified scholarships) will be included in this amount. Financial Aid grants that are applied to student accounts for educational expenses are included in this box.
Box 6 : Adjustments to scholarships or grants for a prior year Decreases of scholarship, financial aid or grant amounts related to scholarships reported in a prior year are included in this box. This amount is reported as a positive number per IRS requirements. However, it is actually a decrease to the amount that was reported on a prior year 1098-T.
Box 7 : This box will be checked if the amount reported in Box 2 includes tuition or qualified amounts billed to a student account in the current year that pay for a semester beginning in the next calendar year. For example, tuition billed in November/December 2011 for Spring 2012 will be reported on your 2011 1098-T. Box 7 will be checked to indicate that this is the case.
Box 8 : A check in this box indicates that you are or have been enrolled at BHSN at least half-time for at least one semester during the calendar year. If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the Hope credit. You do not have to meet the workload requirement to qualify for the Lifetime Learning Credit.
Box 9 : This box will be checked if you are a student enrolled in a program leading to a graduate-level degree. BHSN does not issue graduate-level degrees, so this box will be left blank.
Box 10 : It shows the total amounts of reimbursements or refunds or qualified tuition and related expenses made by an insurer. This box is not used by BHSN so it will be blank.
TAX INFORMATION RESOURCES
If you have questions about how to compute your education tax credit, you should consult your tax professional or refer to the IRS. BHSN is not able to provide tax provide tax advice, but the following are links to further information on 1098-T forms and tax credits:
IRS Telephone Assistance Hotline: 1-800-829-1040