What is a 1098-T?

What is 1098-T?

The IRS Form 1098-T Tuition Statement is used to assist the taxpayer in determining eligibility for certain education tax credits (more information on these credits can be found here: https://www.irs.gov/publications/p970). These benefits may allow tax payers to reduce their federal income tax based upon qualified tuition and fees paid, assuming the taxpayer meets all Taxpayer Relief Act of 1997 requirements. 

What is reported on 1098-T?

Your 1098-T will report Qualified Education Expenses (QEE) paid to the University (reported in Box 1). Tuition and most campus based fees are considered qualifying education expenses. The IRS does not consider housing, transportation, the one-time document fee, and health insurance as educational expenses.

To view the IRS definition of qualified education expenses, please read page 12-14 on the IRS Publication 970

It will also report the total amount of scholarships, grants, or educational assistance funds processed within the calendar year. Regardless of what the aid was applied towards (tuition, refund, etc), the total amount is reported in Box 5. 

View a sample 1098-T form with box/section explanations. 

More information about the 1098-T Tax form can be found here: https://sfs.ucsd.edu/student-accounts/1098-t.html

Note: The information on this page is not tax advice, but is provided as a service to students and families to assist them in understanding the potential higher education tax credits. 

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