Form 1098-T (Tuition Statement) is an informational return that educational institutions are required to issue to each student that is enrolled and for whom a reportable transaction is made. The 1098-T provides tax information to both the taxpayer and the IRS, which may be useful in determining eligibility for tax credits and/or deductions.
Either the student, or the person who claims the student as a dependent, may be eligible for tax credits and/or deductions on their individual income tax return for qualified tuition and related expenses.
Please note that the 1098-T may not provide all of the information you need to determine eligibility. You will also need your personal financial records.
Eligibility for any tax benefit depends upon your individual facts and circumstances. The University cannot provide tax advice. Please consult the IRS or a tax professional to find out more about education credits and deductions and your eligibility.
Box 1 reports combined payments from all sources, but it will not exceed the qualified tuition and related expenses (QTRE) billed during the tax year. Box 1 may include payments that are also reported in Box 5 Scholarships and Grants. Therefore, the amounts on Form 1098-T Box 1 might be different from personal payments you made to Texas State University.
As part of ongoing sustainability and cost reduction measures, Texas State University provides students a 1098-T tax form and financial addendum electronically.
Two options are available to obtain your 1098-T form:
*To obtain your current and prior year tax forms, please view these detailed instructions .
Texas State University is unable to provide you with individual tax advice. If you have questions, you should seek the counsel of an informed tax preparer or advisor. You can also contact the IRS at 800.829.1040 or the IRS Office of Public Liaison at 202.622.2970 for details.
Depending on the below items, you may be eligible for a federal education tax credit.
You can find detailed information about claiming education tax credits in IRS Publication 970, page 9.
The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863. The Form 8863 is used for calculating the education tax credits that a taxpayer may claim as part of their tax return.
Box 1 reports combined payments from all sources, but it will not exceed the QTRE billed during the tax year. Box 1 may include payments that are also reported in Box 5 Scholarships and Grants. Therefore, the amounts on Form 1098-T, Box 1 might be different from personal payments you made to Texas State University.
Amounts Paid for QTRE: Box 1 will report payments made toward qualified tuition and related expenses that were billed in a calendar year. The IRS does not consider fees for health services or transportation qualified tuition . So, payments made toward these charges will not be reflected on the 1098-T. All other tuition and related expenses paid are reported in Box 1. Adjustments Made for a Prior Year: Box 4 represents any adjustments made for a prior year to Form 1098-T. This may reduce any allowable education credit that you claimed for the prior year. Scholarships and Grants: Box 5 represents the total of all scholarships or grants administered and processed by the eligible educational institution. The amount of scholarships or grants for the calendar year reduce the amount of any allowable tuition and fees deduction or the education credit you may claim for the year. Adjustments to Scholarships or Grants for a Prior Year: Box 6 represents adjustments to scholarships or grants for a prior year. This may affect the amount of any allowable tuition and fees deduction or education credit claimed for the prior year. Additional Information Reported: Box 3 is checked because Texas State University changed its reporting method beginning with tax year 2018. Box 7 indicates, if checked, that Box 1 includes amounts for an academic period beginning in the next calendar year. For example, if you registered and paid for the upcoming Spring semester during November or December, this box will be marked. Box 8 is checked if you have been a student for 6 credit hours (half time) or more for one academic period that began during the calendar year. Box 9 shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential.
Qualified higher education expenses mean tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution that were paid from January 1 to December 31 of the tax year.
The University counts as non-qualified expenses room and board, student activities, courses not required for the degree program, insurance, equipment, transportation, or other similar personal, living or family expenses.
Check the IRS website, contact the IRS, or contact a tax advisor. http://www.irs.gov/taxtopics/tc313.html
As part of ongoing sustainability and cost reduction measures, Texas State University provides students a 1098-T tax form and financial addendum electronically. This information will be available to students no later than February 1st following each tax year, and notification will be sent to the student’s campus email address.
The university does not generate 1098-T information for non-credit courses, even if they were required by the university.
