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Tax Information for 1098-Ts
Online access to your 2006 Form 1098-T is not yet available. Access
is expected to be available no later than January 31, 2007. If you need a reprint of
a prior year's form,
please call the Comptroller's Office at (318) 257-4325.
Frequently Asked Questions Concerning Form 1098-T
- What is a Form 1098-T?
- When will the Forms 1098-T be mailed?
- Where will the Forms 1098-T be mailed?
- What should I do if I haven’t received my Form 1098-T?
- What information is reported on Form 1098-T?
- What amounts are included in Box 2, “Amounts billed for qualified tuition and related expenses?”
- What amounts are included in Box 3, “Adjustments made for a prior year?”
- What amounts are included in Box 4, “Scholarships or grants?”
- What amounts are included in Box 5, “Adjustments to scholarships or grants for a prior year?”
- What is the Hope Credit?
- What is the Lifetime Learning Credit?
- What is the Tuition and Fees Deduction?
- How can I get help in determining if I am eligible to take one of the credits?
What is a Form 1098-T?
IRS Form 1098-T is titled “Tuition Statement” and contains information to assist you in determining if you are eligible to
claim certain education related tax credits created by the Tax Relief Act of 1997 or a deduction created by the Economic Growth
and Tax Relief Reconciliation Act of 2001.
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When will the Forms 1098-T be mailed?
Forms 1098-T must be postmarked by January 31st. You should receive your Form
1098-T no later than the end of the first
week in February.
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Where will the Forms 1098-T be mailed?
A
Form 1098-T will be mailed to your permanent address on file with the University, unless that address is not a
valid address. A local address will be used, if available, when the permanent address is not valid.
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What should I do if I haven’t received my Form 1098-T?
Forms 1098-T will be mailed by January 31st. You should receive your Form
1098-T by the end of the first week of February. If you have not received a Form
1098-T by the end of the first week in February,
click here to
print your 1098-T.
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What information is reported on Form 1098-T?
Educational institutions are required to report the following for each student:
- Social security number
- Name
- Address
- Either payments received (Box 1) or amounts billed (Box 2) for qualified
tuition and related expenses (the University has chosen to report amounts billed
in Box 2)
- Decreases to amounts reported in either Box 1 or Box 2 of a
previously issued
Form 1098-T (Box 3)
- The amount of scholarships or grants received (Box 4)
- Decreases to amounts reported in Box 4
of a previously issued Form 1098-T
(Box 5)
- Whether you were enrolled as at least a half-time student (Box 8)
- Whether you were enrolled as a graduate student (Box 9)
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What amounts are included in Box 2, "Amounts billed for qualified tuition and related expenses?"
Only qualified tuition and related expenses are reported in Box 2. This
includes in-state tuition, out-of-state tuition, international fees,
energy surcharge fees, technology fees, college fees, and required lab,
clinical, intern, practicum, or field fees. Qualified tuition and
related expenses are reported in Box 2, net of any current calendar
year adjustments not affecting an amount reported in a previous year.
Amounts such as dorms, meals, the Lagniappe fee, the AWS fee, Tech
Express charges, penalties, or fines are not considered qualified
tuition and related fees and are not reported on Form 1098-T.
Please note that your 1098-T reports the amounts billed during the
current calendar year. Eligibility for the Hope Credit, the Lifetime
Learning Credit, and the Tuition and Fees Deduction are based upon when
you paid any eligible expenses. Therefore, you should use the
information on the 1098-T in conjunction with your own payment records
to determine eligibility for the credits or deduction.
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What amounts are included in Box 3, “Adjustments made for a prior year?”
Box 3 reports decreases to amounts reported as qualified tuition and related expenses in Box 2 of a previously issued
Form 1098-T. Please note that
decreases to an amount to be reported in
the current year and increases pertaining to a prior year are netted
with current year qualified tuition and related expenses and reported
in Box 2 on the current year 1098-T. Consult your tax advisor for
assistance in determining the effect of an item reported in Box 3 on
your current and prior years’ tax returns.
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What amounts are included in Box 4, "Scholarships or grants?"
Scholarships
and grants administered and processed by the University are included in
Box 4. Box 4 does not include third party payments received on your
behalf.
Please note that you may receive additional scholarships that the
University does not administer and process. These should also be taken
into consideration when determining your eligibility for the credits.
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What amounts are included in Box 5, “Adjustments to scholarships or grants for a prior year?”
Box
5 reports decreases to amounts reported as scholarships and grants in
Box 4 of a previously issued
Form 1098-T. Please note that decreases to an amount to be reported in
the current year and increases pertaining to a prior year are netted
with current year scholarships and grants and reported in Box 4 of the
current year 1098-T. Consult your tax advisor for assistance in
determining the effect of an item reported in Box 5 on your current and
prior years’ tax returns.
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What is the Hope Scholarship Credit?
The Hope Credit was created by the Taxpayer Relief Act of 1997 and allows certain taxpayers who pay qualified tuition and
related expenses to an eligible education institution to claim a credit against their federal income tax liability. The
credit may be claimed for qualified tuition and related expenses (room and board are not eligible) paid on behalf of
each student in the taxpayer’s family who was enrolled at least half-time in an eligible institution; enrolled in the
first two years of post-secondary education; enrolled in a program leading to an undergraduate degree or other recognized
educational credential; and who has no felony drug conviction on their record. The maximum credit per student for 2005
is $1,500 (all of the first $1,000 of qualified education expenses plus 50% of the next $1,000). The credit may be reduced
based on the taxpayer’s adjusted gross income. The credit is available for qualified payments made during 2005 for any
academic period beginning between January 1, 2005 and March 31, 2006.
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What is the Lifetime Learning Credit?
The Lifetime
Learning Credit was created by the Taxpayer Relief Act of 1997 and
allows certain taxpayers who pay qualified tuition and related expenses
to an eligible education institution to claim a credit against their
federal income tax liability. The credit may be claimed for the
qualified tuition and related expenses (room and board are not
eligible) paid by a taxpayer’s family for students who were enrolled in
undergraduate, graduate, or professional degree courses, or enrolled in
any course of instruction to acquire or improve job skills, and
receiving instruction from an eligible institution. The maximum credit
per family for 2005 is $2,000 (20% of first $10,000 of qualified
tuition and fee payments). The credit may be reduced based on the
taxpayer’s adjusted gross income. The credit is available for qualified
payments made during 2005 for any academic period beginning between
January 1, 2005 and March 31, 2006.
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What is the Tuition and Fees Deduction?
The Tuition and
Fees Deduction was created by the Economic Growth and Tax Relief
Reconciliation Act of 2001 and allows certain taxpayers who pay
qualified tuition and related expenses to an eligible education
institution to claim an adjustment to income on their tax return. The
deduction may not be claimed in conjunction with either the Hope Credit
or Lifetime Learning Credit. The deduction is based on qualified
tuition and related expenses (room and board are not eligible) paid on
behalf of the taxpayer, the taxpayer’s spouse, or the taxpayer’s
dependent for whom the taxpayer claims an exemption. The maximum
deduction for 2005 is $4,000. The credit may be reduced based on the
taxpayer’s adjusted gross income. The credit is available for qualified
payments made during 2005 for any academic period beginning between
January 1, 2005 and March 31, 2006.
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How can I get help in determining if I am eligible to take one of the credits?
The
University cannot offer legal or tax advice. Additional information
concerning the Hope Credit, the Lifetime Learning Credit, and the
Tuition and Fees Deduction is available in IRS Publication 970, Tax
Benefits for Higher Education.
Publication 970 may be downloaded at
www.irs.gov. Questions concerning eligibility should be directed to the IRS or your tax professional.
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