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Understanding the 1098T. What is a 1098T? Educational institutions are required to report to students the amounts of qualified tuition expenses and scholarships.

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Presentation on theme: "Understanding the 1098T. What is a 1098T? Educational institutions are required to report to students the amounts of qualified tuition expenses and scholarships."— Presentation transcript:

1 Understanding the 1098T

2 What is a 1098T? Educational institutions are required to report to students the amounts of qualified tuition expenses and scholarships assessed to your student account from January 1 st to December 31 st. This form will assist you in determining if you qualify for an educational tax credit. The federal government provides tax credits for educational payments made for qualifying expenses during the calendar year. However, not all expenses you pay to the university are considered qualified expenses. In general tuition and fees that are directly related to your attendance and education are allowable. Room and board, insurance, health fees, transportation and other personal expenses are excluded. – Please consult a professional tax advisor or the IRS regarding qualification for this tax credit

3 UNF Reports Tuition Billed; NOT Tuition Paid The amount on 1098T does not necessarily reflect the amount you paid; you should save your receipts to accurately report that figure to the IRS – Payment history is saved in View & Pay My Bill UNF reports the amounts assessed to your student account from January 1 st to December 31 st reporting the total sum of qualified tuition expenses in box 2 of the 1098T Qualified grants, waivers, scholarships and third party payments are reported in box 5 – Please note that the 1098T does not report by term but by date of the activity.

4 What do the amounts in the box indicate?  Box 1 is used for institutions who report on the amount paid by students. The University of North Florida does not report on amounts you paid, so box #1 will be blank on the form you receive from the University.  Box 2 reports the amount of qualified tuition and related expenses assessed to your student account during the calendar year*. The figure reported here is the amount the University assessed you for tuition and fees and does not necessarily represent the amount you paid toward qualified expenses during this the calendar year.*  Box 3 indicates whether or not the University has changed its reporting method. UNF has not made any reporting changes.  Box 4 reports any adjustments assessed to your student account during the calendar year* for qualified tuition and related expenses that were reported on prior year 1098T. For example, if you registered for 15 hours in November 2011 for the Spring 2012 term and then dropped a class in January 2012, that amount would be reported as an adjustment. as we reported 15 hours on your T. For most students this box will be blank.  Box 5 reports the amount of grants, waivers, scholarships and third party payments made to your student account during the calendar year.*  Box 6 reports the amount of any adjustments assessed to your student account during the calendar year* for grants, waivers, scholarships and third party payments you received in a prior tax year.  Box 7 is checked to notify you and the IRS that some of the amount indicated in Box 2 relates to a semester that begins in the first quarter of the following year.  Box 8 will be checked if you were enrolled at least half-time (6 credit hours) for at least one semester.  Box 9 will be checked if you are a graduate student. This will identify you as already having a bachelor’s degree. *Calendar year is January 1 st to December 31 st

5 To retrieve your 1098T: Go to myWings/Student Tab/Tax Information The 1098Ts are available online in mid-January for the preceding year The 1098T form may assist you in determining if you are eligible to claim a credit on your tax returns

6 This screen will display: – Enter the tax year in the box and click Submit – The 1098T form will display; you can print it for your records – Additional information is provided that explains how the amounts for each box were determined NOTE: Tax data is historically stored so you can retrieve previous years

7 Question: What do I need to know if I believe the amounts on my 1098T form are wrong? The University of North Florida does not report on amounts you paid. Box #1 will be blank on the form you receive from the University The reporting is not term based, but calendar year based (January 1 st to December 31 st ) Box 2 of the 1098T form reports qualified tuition, related expenses assessed on your student account from January 1 st to December 31 st. Not all fees are considered qualified fees by the IRS. Room and board, books, insurance, health fees, transportation and other miscellaneous fees will NOT be included. The amount reported may not necessarily represent the amount you paid towards tuition and fees for the year. You should keep your payment receipts to claim on your tax return the amount you paid out-of-pocket towards qualified educational expenses. You can view your payment history in View & Pay My Bill (payments tab) Box 5 Grants, scholarships, waivers and third party payments that were applied to your account from January 1 st to December 31 st will be included Box 7 is checked to notify you and the IRS that some of the amount indicated in Box 2 relates to a semester that begins in the first quarter of the next year. If class(es) are added or dropped after December 31 st, those changes will be reflected on next year's 1098T as they occurred in a different calendar year

8 Informational websites on educational tax credits include: Internal Revenue Service (IRS) Website Tax Information for Students Tax Incentives for Higher Education IRS Publication 970 (PDF): Tax Benefits for Higher Education. IRS Publication 970 Instructions for IRS Forms 1098-E and 1098-T (PDF) Instructions for IRS Forms 1098-E and 1098-T IRS Form Education Credits with instructions (PDF) IRS Form 8863 Taxpayer Relief Act of 1997 (full-text) Taxpayer Relief Act of 1997

9 You can also view tuition charges and payments on myWings: Go to myWings/student tab/student self service/Student Account Then click Account Summary by Term This provides detailed information for each term, indicating the amount of your tuition and fees and how your tuition and fees were paid

10 Consult a professional tax advisor or the IRS regarding qualification for this tax credit If you believe that your 1098T has an error, contact us at


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