Frequently Asked Questions About Form 1098T
1. What is the Purpose of Form 1098T?
The 1098T 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’s identification number (TIN), 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 1098T 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 education credits. It should not be considered as tax opinion or advice. While it is a good starting point, the 1098T, as designed and regulated by the IRS, 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.
2. Why did I receive a 1098T and what am I supposed to do with it?
In January of each year, Delgado Community College mails an IRS Form 1098T to all students who had qualified tuition and other related educational expenses billed to them during the previous calendar year. This 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 education credits. Receipt of Form 1098T 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. *NOTE: It is up to each taxpayer to determine eligibility for the credits and how to calculate them.
3. I did not receive a 1098T form. Why?
Delgado Community College was not required to send you a form.
- Delgado is only required to send 1098T forms to students whose qualified tuition and
related expenses are greater than the students’ scholarships, grants and waivers (Please
refer to IRS Instructions for Forms 1098E and 1098T page 2 under exceptions). As an example:
- Student A has qualified tuition and fees of $7,550 (Box 2) and scholarship, waivers and grants of $11,250 (Box 5) for calendar year 2013. Student A will not be mailed a 1098T form from Delgado. However, this information can be viewed through your LoLA account.
- Student B has qualified tuition and fees of $8,275 (Box 2) and scholarship, waivers and grants of $2,250 (Box 5) for calendar year 2013. Student B will receive a 1098T form from Delgado.
The address Delgado has on record is not your current address.
- Your 1098T is available online through your LoLA account. Please see Question 9 for information on receiving a duplicate 1098T.
- Students will also be required to update their address through LoLA.
You do not have a valid social security number or are a non-resident alien.
- If you do not have a valid social security number, a 1098T may not have been issued. Please see Question 7 for information on updating your social security number.
- Unless Delgado is provided a valid SSN or ITIN number and a 1098T is requested by the student, a 1098T will not be issued.
4. Why is box 1 of my 1098T Blank?
Box 1 (Payments received for qualified tuition and related expenses) is blank because Delgado reports “Amounts billed” instead. The IRS provides the option for universities to report either “Payments received” in Box 1 OR “Amounts billed” in Box 2, but not both (refer to Page 14 of IRS Publication 970 for details). Delgado has elected to report “Amounts billed”. However, the tax credits are based on the amount of qualified tuition and related expenses actually paid. Please refer to your Student Account in LoLA to determine the amount of qualified tuition and related expenses that you actually paid during the calendar year when computing your credit.
5. What information was reported in Boxes 2 and 5 of my Form 1098T?
This box will contain the sum of all qualified tuition and related expenses billed to a student during a calendar year. Tuition waivers and exemptions will reduce the sum of the student’s qualified tuition and related expenses for the year.
This box contains the sum of all scholarships and grants Delgado Community College administered and processed for the student during the calendar year. Scholarships that pay for tuition (qualified scholarships) and other expenses (non-qualified scholarships) will be included in this amount. Payments received from third party sponsors that are applied to student accounts for educational expenses are included in this box.
6. What educational expenses are considered as qualified tuition and related expenses?
Qualified tuition and related expenses for calculating tax credits/deductions
- Tuition and fees required for enrollment or attendance at an eligible educational institution (any accredited public, nonprofit, or proprietary postsecondary institution – including Delgado)
Ineligible expenses for calculating tax credits/deductions
- Book store charges
- Application, Transcript, and Testing Fees
- Late fees and/or fines
- Loan Processing Fees
- Other similar charges
7. How is my Financial Aid Reported?
Financial aid, including scholarships and/or grants, is only reported when it is not expected to be paid back by the student. Similar to tuition and other applicable charges, financial aid is reported on your 1098T according to the calendar year that is was posted to your account, not necessarily the year it was applied or refunded.
8. I lost my 1098T form. How do I get another?
1098T forms are also accessible online through your LoLA account. To retrieve your copy in LoLA click on the Student tab. Select Student Account and the Select Tax Year. Once the tax year in entered, click Submit and Tax Notification. From this screen you can view your Form 1098T and the supplemental information provided.
9. Whom do I contact if the Social Security Number on my Form 1098T is missing or incorrect?
To update your SSN, please contact Delgado Community College Registrar’s Office.
10. I disagree with the data reported on my Form 1098T. Whom should I contact to correct this condition?
Please contact the Accounts Receivable Department at Delgado Community College.
11. Was my financial information reported to the IRS?
Delgado only reports the qualified students’ financial information to the IRS. Your financial information was reported to the IRS if:
- You received a paper Form 1098T in the mail
- Your electronic copy states Hard Copy Mailed - Yes under the supplemental information. To review your electronic copy, please see number 10 above.
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. Forms are mailed at the end of January of each year for the previous tax year.
12. How do I know if I qualify for an education tax credit or deduction, and how do I claim it if I qualify?
The college cannot advise students on the preparation of their tax return. Information for calculating a credit or deduction can be found in IRS Publication 970 "Tax Benefits for Education”. As a reminder, 1098T forms will NOT be mailed to students whose scholarships/grants totals (Box 5) is greater or equal to the total amount billed for eligible charges (Box 2).
Note: Please be advised that Delgado is prohibited from providing legal, tax, or accounting advice to students and we are not responsible for any use you make of this information.