Navigating Tuition Tax Forms: A Comprehensive Guide

For students and their families navigating the complexities of tax season, understanding tuition tax forms is essential. These forms, primarily the 1098-T, provide crucial information needed to claim education tax credits and deductions. This article aims to provide a comprehensive overview of tuition tax forms, including what they are, how to use them, and what each box represents.

Introduction to Tuition Tax Forms

Tuition-paying students at eligible colleges or other post-secondary institutions should receive a copy of Internal Revenue Service Form 1098-T from their school each year. Eligible institutions include most colleges, universities, and vocational schools that are eligible to participate in the Department of Education’s student aid programs. The IRS Form 1098-T Tuition Statement is used to assist the taxpayer in determining eligibility for certain education tax credits. If you're a student and a taxpayer, you may be eligible to claim deductions and tax credits for qualified tuition and related education expenses. You'll receive a 1098-T form if you have any expenses that qualify for a credit or deduction. If you received a 1098-T, here's how you can use it to claim educational tax credits and deductions. The 1098-T form will be available on January 31 for the previous tax year.

Understanding Form 1098-T: Tuition Statement

Schools are required to send Form 1098-T to any student who paid "qualified educational expenses" in the preceding tax year. If someone else pays such expenses on behalf of the student (like a parent), the student still gets "credit" for them and receives the 1098-T.

Key Components of Form 1098-T

The 1098-T form contains several boxes, each providing specific information. Here's a breakdown of what each box represents:

Box 1: Payments Received for Qualified Tuition and Related Expenses: Enter the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year. The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year that relate to the payments received for qualified tuition and related expenses during the same calendar year. The amount reported is not reduced by scholarships and grants reported in box 5. If the school reports the amount paid, it puts that figure in Box 1 of the form. A school generally has to use the same reporting method every year. Amounts paid are reported on your 1098-T form based on the date the payment is posted to TritonLink, regardless of the date or term the charge was posted. For example, a charge for Winter Quarter 2022 that is posted to your TritonLink in November 2021 would be included on your 2021 tax form if the payment is posted to your TritonLink by 12/31/2021.

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Box 2: This box is currently not used.
Box 3: Change in Reporting Method: If the school changes its method-which requires IRS approval-it puts a check mark in Box 3.
Box 4: Adjustments Made for a Prior Year: Box 4 of the form shows any adjustments the school has made to qualified expenses reported on a previous year's 1098-T. Adjustments made for a prior year.
Box 5: Scholarships or Grants: Box 5 shows the amount of scholarships and grants that were paid directly to the school for the student's expenses. Enter the total amount of any scholarships or grants that you administered and processed during the calendar year for the payment of the student’s costs of attendance. Scholarships and grants generally include all payments received from third parties (excluding family members and loan proceeds). This includes payments received from governmental and private entities such as the Department of Veterans Affairs, the Department of Defense, civic and religious organizations, and nonprofit entities. A scholarship or grant is administered and processed by you if you receive payment of an amount, whether by check, cash, electronic transfer, or other means, and such payment is designated as a grant or a scholarship by the payor, or the circumstances make it clear that the payment is a grant or scholarship. Scholarships or grants.
Box 6: Adjustments to Scholarships or Grants for a Prior Year: Box 6 shows any adjustments the school has made to scholarships and grants reported on a previous year's 1098-T. Adjustments to scholarships or grants for a prior year.

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Box 7: Checkbox for Amounts Related to an Academic Period Beginning Next Year: This box is not defined in the provided text.
Box 8: Half-Time Student: Check this box if the student was at least a half-time student during any academic period that began in 2025. 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. Your institution’s standard for a half-time student work load must equal or exceed the standards established by the Department of Education under the Higher Education Act and set forth in 34 C.F.R.
Box 9: Graduate Student: Check this box if the student was a graduate student.
Box 10: Tuition Insurance Reimbursements: Box 10 of the form comes into play only in cases in which students have had expenses reimbursed under a "tuition insurance" policy.

Accessing and Managing Your 1098-T Form

We highly encourage students to opt in for electronic delivery, which provides faster access and includes more detailed information. Upon providing your e-consent, you will view your 1098-T form exclusively online. You can print it out anytime you need it via the Tab Services site. For quicker and more detailed access, view your 1098-T online via the Tab Services site. If you have not already done so, you will need to provide e-consent to view your 1098-T electronically before you can access it online. Visit www.tsc1098t.com and log in. If you are a student without an SSN/ITIN or have otherwise not provided your SSN/ITIN to UC San Diego, use the temporary password 0000. Once logged in, you will have access to view/download/print your form(s) from the previous three tax years.

Correcting Errors on Form 1098-T

If you believe there is an error with the amount(s) reported on your form, please verify by reviewing your billing statements on TritonLink as well as your bank records. If you have any questions about the delivery of your 1098-T, discrepancies in the information provided, or inquiries about the form's content, our dedicated team at SFS is here to assist you.

Claiming Education Tax Credits and Deductions

“Generally, you must receive a Form 1098-T from an eligible educational institution to be eligible to claim the American Opportunity Credit or the Lifetime Learning Credit. However, if you didn't receive one because the school wasn’t required to furnish the form, you may still be able to claim the credit. But make sure that you otherwise qualify for the credit.

American Opportunity Credit (AOC)

The American Opportunity Tax Credit is for the first four years of higher education.

Lifetime Learning Credit (LLC)

The Lifetime Learning Credit can be used for undergraduate, graduate, and professional degree courses - including courses taken to improve job skills.

IRS Initiatives for E-filing

The Taxpayer First Act of 2019 authorized the Department of the Treasury and the IRS to issue regulations that reduce the 250-return e-file threshold. T.D. 9972, published February 23, 2023, lowered the e-file threshold to 10 (calculated by aggregating all information returns), effective for information returns required to be filed on or after January 1, 2024. The IRS has developed IRIS, an online portal that allows taxpayers to e-file information returns after December 31, 2022, for 2022 and later tax years. In addition to these specific instructions, you should also use the current General Instructions for Certain Information Returns.

Form 1098-E: Student Loan Interest Statement

If you are required to file Form 1098-E, you must provide a statement or acceptable substitute, on paper or electronically, to the borrower. Pursuant to Regulations section 301.6109-4, all filers of Form 1098-E may truncate a borrower’s TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)) on payee statements. Truncation is not allowed on any documents the filer files with the IRS. A recipient’s/lender’s TIN may not be truncated on any form. Enter the name, address, and telephone number of the filer of Form 1098-E. The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1098-E. Additionally, the IRS encourages you to designate an account number for all Forms 1098-E that you file.

Key Components of Form 1098-E

Box 1: Student Loan Interest Received: Enter the interest you received on a student loan(s) during the calendar year. For loans made on or after September 1, 2004, you are required to include in box 1 payments of interest as described in Regulations section 1.221-1(f). Under that regulation, interest includes capitalized interest and loan origination fees that represent charges for the use or forbearance of money.
Box 2: This box is not defined in the provided text.

Filing Requirements and Guidelines

To ease statement furnishing requirements, Copy B of Forms 1098-E and 1098-T are fillable online in a PDF format, available at IRS.gov/Form1098E or IRS.gov/Form1098T. You may use Form W-9S, Request for Student’s or Borrower’s Taxpayer Identification Number and Certification, to obtain the student’s or borrower’s name, address, TIN, and student loan certification to be used when filing Form 1098-E or 1098-T. Use of Form W-9S is optional; you may collect the information using your own forms, such as admission or enrollment forms, or financial aid applications. An educational institution, insurer, or lender may establish a system for students and borrowers to submit Form W-9S electronically, including by fax. Also, if an electronic Form W-9S is used to obtain the borrower’s certification that all the loan proceeds are used solely to pay qualified higher education expenses, your electronic system must require, as the final entry in the submission, an electronic signature by the borrower whose name is on Form W-9S. The signature authenticates and verifies the submission. The $600 threshold applies to each borrower regardless of the number of student loans obtained by that borrower. If more than one person has a connection with the loan, only the first person to receive the interest payment must file Form 1098-E. Certified by the borrower as a student loan incurred solely to pay qualified higher education expenses. Report interest paid on revolving accounts, such as credit card accounts, only if the borrower certifies that all the loan proceeds are solely used to pay qualified higher education expenses. You do not have to verify the borrower’s actual use of the funds. If you are required to file Form 1098-E, you must provide a statement or acceptable substitute, on paper or electronically, to the borrower. The global consent process must meet all the consent, disclosure, format, notice, and access period requirements for electronic furnishing of Forms 1098-E in accordance with the applicable regulations. Pursuant to Regulations section 301.6109-4, all filers of Form 1098-E may truncate a borrower’s TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)) on payee statements. Truncation is not allowed on any documents the filer files with the IRS. A recipient’s/lender’s TIN may not be truncated on any form.

Recent Tax Law Changes

The One Big Beautiful Bill that passed includes permanently extending tax cuts from the Tax Cuts and Jobs Act, including increasing the cap on the amount of state and local or sales tax and property tax (SALT) that you can deduct, makes cuts to energy credits passed under the Inflation Reduction Act, makes changes to taxes on tips and overtime for certain workers, reforms Medicaid, increases the Debt ceiling, and reforms Pell Grants and student loans. Updates to this article are in process.

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