What is Form 1098-T?
Form 1098-T is a tax document prepared by higher education institutions to report a student’s enrollment status, payments of qualified tuition and related expenses (QTRE), and scholarships and grants disbursed during the calendar year. A copy of this information is also sent to the Internal Revenue Service (IRS).
What are qualified tuition and related expenses?
Qualified tuition and related expenses (QTRE) include PSU’s tuition, course fees, enrollment fees, and technology fees.
Housing expenses, meals, books, supplies, health insurance fees, and other fees not related to course enrollment are not reported on Form 1098-T.
What does each box on Form 1098-T report?
- Box 1 reports amounts paid for PSU tuition, course fees, enrollment fees, and technology fees during the calendar year. Box 1 may include payments made in the current calendar year for courses to be held at PSU during the upcoming calendar year (e.g., tuition paid in December 2021 for spring semester 2022 will be reported in Box 1 of Form 1098-T issued for calendar year 2021).
- Box 4 is for adjustments made for a prior year such as QTRE payments and/or reductions in charges for QTRE that relate to amounts billed from a prior year.
- Box 5 reports scholarships and grants disbursed during the calendar year. This amount includes all payments designated as scholarships and grants that are administered and processed by PSU Student Financial Services, as well as all payments by third parties (i.e., government, private, civic, religious, and/or nonprofit grants) to offset the cost of attendance.
- Box 6 is for adjustments to scholarships or grants from a prior year.
- Box 7 is checked if any payments received for qualified tuition and related expenses reported for 2021 relate to an academic period that begins in January through March of 2022.
- Box 8 is checked if the student was at least a half-time student during any academic term that began in 2021. A half-time student is a student enrolled for at least half the full-time academic workload for the course of study the student is pursuing.
Please refer to the IRS FAQ on CARES Act funding for information related to Form 1098-T:
Box 1 of my Form 1098-T does not equal the amount I paid to PSU for tuition during the year. Is this a mistake?
No – Box 1 reports amounts paid for QTRE during the calendar year (January to December of the previous year), as opposed to the academic year (September of the prior year to May of the current year) The form does not consider that tuition bills may be due in a different calendar year than the term dates. For example, tuition for the spring term is typically billed in December, so a student may have paid tuition for the spring term in December 2021, even though the classes did not commence until February 2022. The tuition paid for the spring term will be reported in Box 1 of the form issued for calendar year 2021.
I made a payment for the Spring 2022 semester, why isn’t Box 7 of my Form 1098-T checked?
Box 7 is checked if any payments received for qualified tuition and related expenses reported for 2021 relate to an academic period that begins in January through March of 2022. For example, Box 7 would be checked if a payment was posted to your account in December 2021 for the upcoming spring semester; the amount paid would be reported in Box 1, with Box 7 checked. Alternatively, if the payment for the spring semester posted in January 2022, then Box 7 would not be checked, as the payment was not made during calendar year 2021.
Who will receive a Form 1098-T?
PSU issues Form 1098-T only to degree-seeking students whose scholarships and grants do not exceed qualified tuition and related expenses for the calendar year.Copies of Form 1098-T are also filed with the Internal Revenue Service (IRS).
Consistent with IRS regulations, PSU does not issue Form 1098-T to:
- students enrolled in courses that do not lead to a post-secondary degree (e.g., visiting students and exchange students)
- students whose QTRE is 100% covered by scholarships and grants
Note that Form 1098-T may be issued to international students upon request; a student’s SSN/ITIN must be on file to issue a Form 1098-T.
How will I receive my Form 1098-T?
Form 1098-T is mailed to students’ permanent mailing addresses in late January. The Form is also available online; you can access your current 1098-T by logging on to myPlymouth and following this click path:
- Go to the ‘Services’ Tab
- Find the ‘myFinances’ channel
- Click on ‘Your Tax Information (1098-T)’
To make an address correction for your 1098-T form:
1. Log on to your myPlymouth portal and go to the ‘Services’ tab. On the ‘myProfile’ channel, check the mailing address – this is the address the 1098-T will be sent to. Click and update the address if needed.
2. If you are updating your mailing address specifically for your 1098-T during the months of January through March, it is very important that you contact Student Financial Services at 603-535-2215, so that we can update your mailing address on your current 1098-T form.
Foreign universities may not provide a Form 1098-T. Students will need to contact their study abroad provider directly to see if any tax information will be provided.
How do I use Form 1098-T?
The amounts reported on Form 1098-T may assist students in completing IRS Form 8863, which is used to calculate certain education tax credits that students may qualify for when filing their federal income tax returns. Depending on a student’s income (or family’s income, if a dependent), enrollment status (full-time or part-time), and/or the amount of qualified educational expenses for the year, students may be eligible for a federal education tax credit.
It is the student’s responsibility to maintain records of any scholarships, grants and other funding received in excess of tuition and fees during the calendar year, and to report these amounts on his or her individual income tax return if used for non-qualified expenses such as room and board, travel, and non-essential equipment.
There is an error on my Form 1098-T – how can I get a corrected copy?
Contact PSU Student Financial Services: firstname.lastname@example.org
Please note: We will only respond to those messages that include the student ID number and a detailed message about your inquiry.
What resources are available regarding questions on Form 1098-T?
- Form 1098-T: https://www.irs.gov/forms-pubs/about-form-1098-t
- Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits):
- IRS Publication 970, Tax Benefits for Education: irs.gov/publications/p970/index.html
- IRS FAQ HEERF/CARES Act: https://www.irs.gov/newsroom/faqs-higher-education-emergency-relief-fund-and-emergency-financial-aid-grants-under-the-cares-act
Note: PSU cannot provide personal tax advice. Please contact a tax advisor for additional questions.