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1098 T
1098-T FAQ
What is a Form 1098-T?
- Colleges and universities are required under Internal Revenue Code Section 6050S to issue the Form 1098-T for the purpose of determining a tax payer’s eligibility for various tax credits and/or deductions.
Does every student get a Form 1098-T?
- Michigan State University must file a Form 1098-T for each student enrolled for the given calendar year and for whom a reportable transaction is made. However, the IRS does not require Michigan State University to provide a Form 1098-T for: Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program.
- Nonresident alien students
- Students whose expenses are covered by a formal 3rd party billing arrangement such as dual enrolled high school students
What if I look in the Student Information System (student.msu.edu) and don't see a 1098T created for the tax year? Why?
- Depending on your particular situation, Michigan State University may not be required to produce a Form 1098-T for you. See exceptions above.
How do I get my Form?
- A student who is eligible to receive a 1098-T can access it online through theStudent Information Systemas soon as it is available each year. 1098-T forms are required to be available by January 31. To find your 1098-T in the Student Information System:
- Select the Student Accounts Tile
- In the left hand side menu, select "View Tax Forms"
- Select "View 1098-T"
What fees are qualifying for tax purposes?
- For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. The housing, meal plan, orientation, Payment Plan and other miscellaneous fees are generally not qualifying expenses for tax purposes. Please reference IRS Publication 970 Tax Benefits for Education for additional guidance (link to IRS Publication & Forms database provided below). Michigan State University cannot legally provide tax advice. Please consult with a qualified tax preparer or the IRS if you have tax related questions.
What amounts are reported on Form 1098-T?
- Box 1 represents amounts paid for qualifying tuition and related expenses.
- Box 2 is not reported by Michigan State University beginning 2018.
- Box 4 represents reductions made to amounts billed for qualified tuition and related expenses that were reported for a prior calendar year.
- Box 5 represents the total amount of scholarships, grants or 3rd Party Sponsor Credits that were processed for the payment of qualified tuition and college related expenses.
- Box 6 represents the amount of reductions or refunds made for scholarships or grants that were reported for a prior year.
- Box 8 is only checked if you have been at least a half-time student (6 credit hours) for a least one academic period that began during the calendar year.
- Box 9 is checked if you were enrolled as a graduate student for at least one academic period during the calendar year for which reporting is required.
Did you send a copy of this form to the IRS?
- Yes. Section 6050S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires institutions to file information returns to assist taxpayers and the Internal Revenue Service in determining eligibility for the American Opportunity and Lifetime Learning education tax credits. The annual deadline to file the required tax information electronically is March 31, although data may be transmitted earlier.
What am I supposed to do with the 1098-T form?
- Keep it for your personal records and share it with your tax preparer; Michigan State University sends your 1098-T information to the IRS. The information contained in the 1098-T will help you to determine if you may claim various tax credits and/or deductions for qualified educational expenses. Please be aware that the 1098-T captures financial information on a calendar year basis (January 1 –December 31) and you will likely need your statements of account (also available from yourStudent Information System) and other personal receipts (eg. books & supplies) to calculate your tax credits and deductions.
Which expenses qualify for the American Opportunity, or Lifetime Learning Credits?
- Michigan State University cannot legally provide tax advice. Please consult with a qualified tax preparer or the IRS if you have questions concerning how to use this form on your taxes. For additional support, please see the Additional Resources link below.
Who can claim an Education Credit?
- You may be able to claim an education credit if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. If a student is claimed as a dependent on another’s tax return, only the person who claims the student as a dependent can claim a credit for the student’s qualified education expenses. If a student is not claimed as a dependent on another person’s tax return, only the student can claim the credit. If you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. See additional restrictions for claiming the credit in the instructions to Form 8863 at irs.gov/pub/irs-pdf/i8863.pdf.
Additional Resources
- IRS Publication & Forms:www.irs.gov/Forms-&-Pubs
- Form 8863 Instructions for Education Credits:www.irs.gov/uac/about-form-8863
- Form 1040 Instructions:www.irs.gov/pub/irs-pdf/i1040.pdf
- Publication 970, Tax Benefits for Education:https://www.irs.gov/pub/irs-pdf/p970.pdf
