NOTE: Please be advised that Maryville College can not provide legal, tax, or accounting advice to students or parents. We urge you to check with your tax advisor about this and other tax-related documents. 

01. What is the 1098-T Form?

The 1098-T form is used by eligible educational institutions to report information about their students to the IRS as required by the Taxpayer Relief Act of 1997. Eligible educational institutions are required to submit the student’s name, address, and taxpayer identification number, enrollment and academic status. Beginning with 2003, educational institutions must also report amounts to the IRS pertaining to qualified tuition and related expenses, as well as scholarships and/or grants, taxable or not. A 1098-T form must also be provided to each applicable student. This form is informational only. It serves to alert students that they may be eligible for federal income tax credits. It should not be considered as tax opinion or advice. While it is a good starting point, the 1098-T does not contain all of the information needed to claim a tax credit. There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.

02. Why did I receive a 1098-T and what am I suppose to do with it?

In January of each year, Maryville College teams with Affiliated Computer Enterprises, Inc. (ACS) to consolidate and distribute 1098-T forms either by mail or electronically. Additionally, 1098-Ts are always available on the ACS website by going to www.1098-t.com, Access My Record, then following the prompts. All students who had qualified tuition and other related educational expenses billed to them during the previous calendar year will receive a 1098-T form. The form is informational only and should not be considered as tax opinion or advice. It serves to alert students that they may be eligible for federal income tax credits. Receipt of Form 1098-T does not indicate eligibility for the tax credit. To determine the amount of qualified tuition and fees paid, and the amount of scholarships and grants received, a taxpayer should use their own financial records.

03. Is a copy of this form sent 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 Hope and Lifetime Learning education tax credits. An electronic copy of the data is submitted to the IRS each year by March 31 for the previous tax year.

04. Why is Box 7 checked?

The 1098-T form data is pulled from calendar year tuition, fees, and financial aid. Thus, it does not conform to the true academic year information. Spring tuition is billed in December of the previous calendar year, but the financial aid pertaining to the Spring tuition is posted in January. Example: a student’s 2010 1098-T form will include scholarships and grants for the Spring 2010 semester, all Summer and Fall 2010 activity, and Tuition and Fees for the Spring 2011 semester. This timing anomaly is why we urge you to use your personal financial records for tax purposes. The following chart explains the relationship between the student statements and the 1098-T forms:

1098-T Forms Box 2 - Amounts Billed Box 5 - Scholarships / Grants
2007 25,350.00 8,500.00
2008 26,947.00 17,000.00
2009 27,972.00 18,250.00
2010 14,736.50 17,000.00
  95,005.50 60,750.00
     
Statements Tuition and Fees Scholarships / Grants
Fall 2007 12,675.00 8,500.00
Spring 2008 12,675.00 8,500.00
Fall 2008 13,473.50 8,500.00
Spring 2009 13,473.50 8,500.00
Fall 2009 13,986.00 9,750.00
Spring 2010 13,986.00 8,500.00
Fall 2010 14,736.50 8,500.00
  95,005.50 60,750.00

05. What educational expenses are considered as qualified tuition and related expenses?

Included: Tuition and Student Fees. Excluded: Room and Board, Application Fees, Transcript Fees, Student Insurance, Book Vouchers. More information is available at www.irs.gov/publications/p17/ch35.html#d0e74760.

06. Why isn’t there an amount in Box 1?

The IRS instructs institutions to report either payments received (Box 1) or amounts billed for qualified tuition and related expenses (Box 2) on the 1098-T. Maryville College reports qualified tuition and related expenses and scholarships and grants that were billed during the tax year (Box 2); therefore, Box 1 will always be blank.

07. What other information do I need to claim the tax credit?

While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax credit. Most of the information needed must come from the student’s personal financial records of what the student paid during the calendar year. Additionally, each taxpayer and his or her tax advisor must make the final determination of qualifying expenses.

08. What are the Hope Credit and the Lifetime Learning Credit and what are allowable tuition and fee tax deductions for each?

For an overview of the Hope Credit, Lifetime Learning Credit, and allowable tuition and fee tax deductions visit the IRS website atwww.irs.gov/uac/Tax-Benefits-for-Education:-Information-Center. Not all students who pay qualified expenses are eligible for a tax credit. Publication 970 explains tax benefits for education: http://www.irs.gov/pub/irs-pdf/p970.pdf.

09. What is the American Opportunity Credit?

This is a new education tax credit available for 2009 and 2010. The maximum credit per student is $2,500 and it is available for the first 4 years of postsecondary education. Forty percent of the credit is refundable for most taxpayers. Students cannot claim this credit if their MAGI is $90,000 or more ($180,000 or more if filing a joint return). For more information please visit www.irs.gov/uac/American-Opportunity-Tax-Credit.

10. I paid my qualified tuition and related expenses with student loans. Can I still claim a Hope or Lifetime Learning Tax Credit or the Higher Education Tuition and Fees Deduction?

Yes. Loan funds should be considered in the same manner as cash payments when calculating a Hope or the Lifetime Learning Tax Credit or the Higher Education Tuition and Fees Deduction. However, any scholarships, grants, or other non-taxable aid must be deducted from the amount of qualified tuition and related expenses paid. The credit is claimed in the year in which the expenses are paid, not in the year in which the loan is repaid.

11. If I pay college tuition and fees with a scholarship, can I claim an education credit on Form 8863 for these payments?

No. You cannot claim a credit for the amount of higher education expenses paid for by tax-free scholarships. For more information, please visit the IRS website.

12. Where can I find out more about educational tax credits and deductions?

Additional information can be found at www.irs.gov and www.1098-t.com.

13. My address listed on the 1098-T has changed. Will this be a problem?

No. The address shown on Form 1098-T is irrelevant for IRS income tax filing purposes. The single most important information on the form is your Social Security Number. Please call the Registrar’s Office at (865) 981-8028 if the SSN on your 1098-T is incorrect.

14. How do I get a reprint of my 1098-T form?

Please go to www.1098-t.com/, Access My Record, and then follow the prompts.