What is Form 1098-T?
Form 1098-T is used to report the expenses and tuition of students attending an educational institution. Common filers are’ education institutions with students enrolled in courses or programs for one or more academic periods during the year.
Eligible educational institutions are colleges, universities, vocational schools, and other postsecondary educational institutions. More details mention in the section 481 of the Higher Education Act of 1965.
Students can receive a Form 1098-T from any eligible educational institution where they are enrolled in courses or programs that award credits toward a degree, certification, or other recognized postsecondary educational credential.
Only qualified tuition and expenses can be reported on form 1098-T, they include:
- Necessary for fees for attendance
- And other course material
Expenses from any hobbies, sports, courses not related to a degree program or improving related job skills is not included. Amounts paid for room and board are also excluded.
Who Must File 1098-T?
An eligible educational institution is a governmental unit, or agency or instrumentality of a governmental unit, that is subject to the reporting requirements of Form 1098-T.
If another person receives or collects payments of qualified tuition and related expenses on your behalf, then that other person must file Form 1098-T.
Amount from any scholarships or grants administered and processed by you or your business during the calendar year for the payment of the student’s costs of attendance must also be reported.
In addition any insurer engaged in a trade or business involved in making refunds or reimbursements of qualified tuition and other related expenses, is required to file Form 1098-T.
When to file 1098-T?
The IRS requires that all educational institutors required to file form 1098-T provide a Copy B of this form to all Students by January 31st in the year following the year of the academic period(s).
Copy A of this form must be filed with the IRS by February 28th (or the following business day if the 28th falls on a weekend) in the year following the year of enrolment; those filing electronically have until March 31st
Why File 1098-T?
Filing form 1098-T allows students to report education expresses they can receive credit for. The Lifetime Learning Credit offers up to $2,000 for qualified education expenses paid for all eligible students per return. That’s more money back in their pockets each year they file.
Remember to select printing and mailing and/or emailing service when completing your 1098-T return so your students can get their student copies of 1098-T efficiently and without delay. For more questions or assistance reach out to our support team of life support agents.
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