What is a 1098-T and why do I need one?
Form 1098-T: Tuition Payments Statement is the information return that colleges and universities are required to issue for the purpose of determining a student's eligibility for the Hope and Lifetime Learning education tax credits. It is intended to assist you or your parents in the preparation of your federal tax return. 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.
When will my 1098-T be available to me?
1098-Ts must be available annually by January 31.
Where can I find my 1098-T online?
Follow these steps to access your 1098-T tuition statement online:
- Log in to goNSU
- Select the Students Tab
- Scroll down to Requests and Forms box
- Select the **Print Tuition Statement (IRS 1098-T)
- Type in the tax year and select submit to choose the document you wish to access.
I am looking at my 1098-T and I don't see what I spent on books.
The information on this form is what is required by Northeastern State University to report to the Internal Revenue Service. We do not report your expenditures on books. You may want to consult your accountant, tax preparer, or the Internal Revenue Service (www.irs.gov) about your book expenditures and how they relate to your tax preparation.
Did NSU send a copy of this form to the IRS?
Yes. The IRS requires institutions to file information returns to assist taxpayers and the Internal Revenue Service in determining eligibility for the Hope and Lifetime Learning education tax credits. The annual deadline for NSU to file the required tax information electronically is March 31, although data may be transmitted earlier as circumstances allow.
What am I supposed to do with the 1098-T form?
Keep it for your records. Since the University sends your 1098-T information to the IRS, there is no need to attach a copy of the form to your tax return. The information contained in the 1098-T will help you to determine if you may claim the Hope or the Lifetime Learning education tax credits using IRS Form 8863: Education Credits (American Opportunity and Lifetime Learning Credits).
How does this affect my taxes?
Consult your accountant, tax preparer, or Internal Revenue Service (www.irs.gov) on which amounts you can include for tax purposes.
How much can I deduct from my taxes?
Consult your accountant, tax preparer or the Internal Revenue Service (www.irs.gov) for that information.
Where on my tax form do I put this information?
You may obtain information from your accountant, tax preparer or Internal Revenue Service (www.irs.gov) about the Hope or the Lifetime Learning Credit for higher education expenses.
The Social Security Number (SSN) on my form is missing or incorrect. What should I do?
Reporting to the IRS depends primarily on your SSN, so it is very important for you to have the correct information on file with the University. In order to furnish the University with your valid SSN, fill out the W-9S: Request for Student Taxpayer Identification Number (pdf) and return the completed form to Bursar Services.
What does an amount in Box 1 mean?
The amount reported in Box 1 is the total of qualified payments for tuition and fees within the calendar year. The qualified payments amount cannot exceed the amount of qualified charges for tuition and fees for the calendar year. The amount reported is not reduced by scholarships and grants reported in box 5.
Why are Boxes 2 and 10 blank?
These boxes are blank because the information is not applicable to Northeastern State University as the filer of your 1098-T.
Box 2 (“Amounts Billed for qualified tuition and related expenses”) is blank because the IRS has changed the reporting method on 1098-Ts to reflect the payments received starting in tax year 2018.
Box 10 (“Reimbursements from insurance contact”) is blank because NSU is not an insurer.
What does an amount in Box 4 mean?
Box 4 ("Adjustments made for a prior year") shows any reductions in charges made for qualified tuition and related expenses made during the calendar year that relate to amounts billed that were reported for any prior year after 2002.
What is included in Box 5 - Scholarships or Grants - of the 1098-T?
Box 5 includes the total amount of any Scholarships or Grants administered and processed by Northeastern State University during the calendar year for the payment of the student's cost of attendance (which includes nonqualified expenses such as books, room and board). Scholarships and Grants include payments received from 3rd parties (excluding family members and loan proceeds). This includes payments received from governmental and private entities such as the Department of Defense, civic and religious organizations, and nonprofit entities.
The IRS states that there is "no double benefit allowed." This means that if you pay tuition with certain forms of educational assistance, on which you do not pay taxes, you must reduce any education credit you claim by those amounts. See "No Double Benefit Allowed" in Chapter 2 (Hope Credit), or "No Double Benefit Allowed" in Chapter 3 (Lifetime Learning Credit) of Publication 970: Tax Benefits for Education for more information. Reportable forms of education assistance are not limited strictly to scholarships and grants, but may include funds received from employers or sponsors.
What does an amount in Box 6 mean?
Box 6 ("Adjustments to Scholarships or grants for a prior year") shows the amount of any reduction to the amount of scholarships or grants that were reported for any prior year after 2002.
The amount in Box 6 may affect any allowable education credit you claimed for a prior year. Please consult a tax expert to determine if you may need to recalculate your tax benefit for that prior year.
What does the check mark in Box 7 mean?
Box 7, if checked, indicates that amounts billed, for qualified tuition and related expenses reported relate to an academic period that begins in January through March of the following year.
What does the check mark in Box 8 mean?
Box 8, if checked, indicates that you were considered to be "enrolled at least half-time" for one or more quarters during the tax year. At NSU, "at least half-time" means that you were enrolled in 6 or more units for any quarter.
In order to claim the Hope Credit, a student must be enrolled at least half-time in a program that leads to a degree, certificate, or other recognized educational credential for at least one academic period beginning during the tax year. (See "Who is an Eligible Student" in Chapter 1 of IRS Publication 970: Tax Benefits for Education for more information.)
Note that a check mark does not guarantee your ability to claim the Hope Credit, as additional eligibility requirements must be met. Also note that the workload requirement does not apply to the Lifetime Learning Credit, which is allowed for any level of enrollment.
What does the check mark in Box 9 mean?
Box 9, if checked, indicates that you were enrolled in a graduate program for one or more quarters during the tax year. The University checks this box if you attended as a graduate student for any quarter of your enrollment during the tax year.
In order to claim the Hope Credit, a student must not have completed the first 2 years of postsecondary education (generally, the freshman and sophomore years of college) as of the beginning of the tax year. (See "Who is an Eligible Student" in Chapter 1 of IRS Publication 970: Tax Benefits for Education for more information.)
Note that the lack of a check mark in this box does not guarantee eligibility for the Hope Credit, which must be claimed within the first two years of postsecondary education. Since the Lifetime Learning Credit is not so limited, you may choose to apply expenses for graduate-level degree work towards claiming this benefit.
Further information is available from:
Internal Revenue Service www.irs.gov
(800) 829-1040 or TTY (800) 829-4059
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