Why did I receive a 1098-T?
Educational institutions are required by law to report to students the amount of qualified tuition and related expenses that have been paid by the student during the calendar year. Western Technical College has reported the qualified tuition and related expenses paid during the calendar year (January 1– December 31). Western Technical College mails paper copies of the 1098-T form to students each January and also reports this same information to the IRS. Depending on your income (or your family’s income, if you are a dependent), whether you were considered full or half-time enrolled, and the amount of your qualified educational expenses for the year, you may be eligible for a federal education tax credit. (You can find detailed information about claiming education tax credits in IRS Publication 970, Page 9.)
What is included in Box 1?
Box 1 includes qualified tuition and related expenses (QTRE) billed to your student account and paid for during the calendar (tax) year. Qualified tuition and related expenses include tuition charges as well as mandatory student fees. For example, if the tuition and fees for the spring of 2021 are billed in December 2020 but not paid until 2021, the amounts will be reflected on the 2021 1098-T Form.
Why is Box 2 Blank?
In previous years, Western Technical College’s 1098-T Form included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) we billed to your student account for the calendar (tax) year. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, we will report in Box 1 the amount of QTRE you paid during the year.
Why is my enrollment status reported?
To assist the student and the IRS in determining if the student qualifies for these tax credits, Western Technical College is required to indicate whether the student was enrolled at least half time for one semester during the calendar year.
How do I use the 1098-T for tax purposes?
Western Technical College urges you to contact a tax professional regarding the application of this form to your taxes. Employees of Western Technical College can’t provide tax advice.
When will I receive my 1098-T?
The 1098-T form must be post-marked by January 31 of each year. Students may elect to receive an electronic copy of their 1098-T and opt out of receiving a mailed copy of their 1098-T. To opt in to receive only an electronic copy of your 1098-T, please go to Self-Service, Finances, Make a Payment, 1098-T.
What are the benefits of receiving the 1098-T form electronically?
There are several reasons such as:
- Allows the student to access their 1098-T tax form information about 2 weeks earlier than if it were mailed. Students who do not opt to receive their 1098-T tax form electronically can expect to receive a paper copy of their 1098-T tax form after January 31 each year.
- There is no chance of it getting lost, delayed, or misplaced since students can access a copy 24/7.
- Students will also be able to access prior years’ 1098-T tax forms for future needs in a quick and easy fashion.
- Students are able to access their electronic copy using their smart phones, tablets, or computer when they need it.
- Eco-friendly since no paper is needed.
Why did I not receive a 1098-T?
Western Technical College is not required to issue a form to students whose qualified tuition and related expenses were billed but not paid during the calendar (tax) year. If you believe that you should have received a 1098-T but have not received a mailed copy, please go to Self-Service, Finances, Make a Payment, 1098-T to print off a copy or contact the Cashier’s Office at 608-785-9121 or firstname.lastname@example.org.
How can I obtain a copy of my 1098-T?
To obtain a copy of your 1098-T, please go to Self-Service, Finances, Make a Payment, 1098-T. 1098-T Forms will be available on your Self-Service account by January 31.
I am a student who received an emergency financial aid grant under section 3504, 18004, or 18008 of the CARES Act for unexpected expenses, unmet financial need, or expenses related to the disruption of campus operations on account of the COVID-19 pandemic. Is this grant includible in my gross income?
No. Emergency financial aid grants under the CARES Act for unexpected expenses, unmet financial need, or expenses related to the disruption of campus operations on account of the COVID-19 pandemic, such as unexpected expenses for food, housing, course materials, technology, health care, or childcare, are qualified disaster relief payments under section 139 of the Internal Revenue Code. This grant is not includible in your gross income.
I received an emergency financial aid grant under the CARES Act and used it to pay for course materials that are now required for online learning because my college is closed. Can I claim a tuition and fees deduction for the cost of these materials, or treat the cost of these materials as a qualifying education expense for purposes of claiming the American Opportunity Credit or the Lifetime Learning Credit?
No. Because the emergency financial aid grant is not includible in your gross income, you cannot claim any deduction or credit for expenses paid with the grant including the tuition and fees deduction, the American Opportunity Credit, or the Lifetime Learning Credit. See section 139(h) of the Internal Revenue Code.
Do higher education institutions have any information reporting requirements under section 605OS for emergency financial aid grants awarded to students under section 3504, 18004, or 18008 of the CARES Act?
No. The emergency financial aid grants are qualified disaster relief payments, as described above, and are not included in students’ gross income. As noted above, students may not claim deductions or credits for these amounts. The reporting of these grants to the IRS on Form 1098-T could result in the issuance of underreported notices (Letters CP2000) to students and furnishing such Forms 1098-T to students could cause confusion. Thus, the IRS will not require that these grants be reported pursuant to section 6050S of the Internal Revenue Code on Form 1098-T.
Where can I obtain additional information about Form 1098-T?
For more information about Form 1098-T, visit https://www.irs.gov/forms-pubs/about-form-1098-t.