Tax Benefits for Education - 1098-T

 

As required by the Internal Revenue Service (IRS), Form 1098-T is made available by January 31 to all students who had qualified tuition and other related educational expenses payments during the previous calendar year.

The 1098-T form is informational only and should not be considered as tax advice. It serves to alert students that they may be eligible for federal income tax education credits such as the American Opportunity Credit, Lifetime Learning Credit and the Hope Credit as part of their Federal Income Tax Return. IRS Publication 970 "Tax Benefits for Higher Education" as well as Chapter 35 of IRS Publication 17 provide additional information on these credits. While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax credit. To determine the amount of qualified tuition and fees paid, and the amount of scholarships and grants received, a taxpayer should use their own financial records. There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.

 

Frequently Asked Questions 

What is a 1098-T?

Why did I receive a Form 1098-T?

What amount is in Box 1?

For purposes of Box 2, what educational expenses are considered as qualified tuition and related expenses?

I did not keep information on my payments and student loan disbursements.  Where can I get copies?

What amounts appear in Box 4 – Adjustments made for a prior year?

How did the University figure out what amounts to include in Form 1098-T Box 5 – Scholarships or Grants?

What amounts appear in Box 6 – Adjustments made for a prior year?

Why is there no check mark in Box 8 – At least part-time?

 How do I get a reprint of my Form 1098-T?


What is a 1098-T?

The 1098-T form is used by eligible educational institutions to report information about their students to the IRS as required by the Taxpayer Relief Act of 1997. Eligible educational institutions are required to submit the student's name, address, taxpayer's identification number (TIN), enrollment status, amounts pertaining to qualified tuition and related expenses, and scholarships and/or grants, taxable or not. A 1098-T form must also be provided to each applicable student.   [top]

 

Why did I receive a Form 1098-T?

In January of each year, the University of Missouri System provides secure electronic access at to an IRS Form 1098-T for all students who had payments toward qualified tuition and other related educational expenses  during the previous calendar year. If the student has not agreed to receive the form electronically, it is mailed at the end of January.   [top]

 

What amount is in Box 1?

Box 1 shows the total payments received by an eligible educational institution in 2019 from any source for qualified tuition and related expenses less any reimbursements or refunds made during 2019 that relate to those payments received during 2019.   [top]

 

For purposes of Box 2, what educational expenses are considered as qualified tuition and related expenses?

**Affective Tax year 2018 Federal regulations require reporting in box 1** previously issued 1098T's will have amounts in box 2

Qualified tuition and related expenses refer to tuition and required fees, such as information technology, student activity and supplemental fees, a student must pay to be enrolled at or attend an eligible education institution. 

Qualified expenses do not include:

1.  Charges and fees for room, board, insurance, health service fee, transportation, personal, living and other family expenses.

2.  The cost of books and equipment are generally not qualified expenses because eligible educational institutions usually do not require that the cost of the books or equipment be paid to the institution as a condition of the student's enrollment or attendance at the institution.   [top]

 

I did not keep information on my payments and student loan disbursements.  Where can I get copies?

This information may be found on your TouchNet account activity by logging into Joe’SS under Finances section and clicking the link "Proceed to TouchNet".  If you are a parent looking for this information and do not have authorize access granted by the student, please ask your student to access this information for you.   [top]

 

What amounts appear in Box 4 – Adjustments made for a prior year?

This box shows the amount of any tuition and fees reductions in the current calendar year for charges that were paid in a previous calendar year.   [top]

 

How did the University figure out what amounts to include in Form 1098-T Box 5 – Scholarships or Grants?

The figure in Box 5 includes scholarships, grants, waivers and, if applicable, payments made by a third party under formal billing arrangements (i.e. outside scholarships, employer provided educational assistance [regardless of taxability], military, etc.) which have been administered by the University of Missouri System.  If you received other forms of outside scholarships and grants not administered by the University of Missouri System, it is your responsibility to adjust the figure accordingly.  Third party payments do not include payments made by your parent or other individuals.   [top]

 

What amounts appear in Box 6 – Adjustments made for a prior year?

This box shows the amount of any scholarship, grant, and if applicable, third party reductions in the current calendar year for aid that was credited in a previous calendar year.   [top]

 

Why is there no check mark in Box 8 – At least part-time?

Box 8 will not be checked if you were not enrolled at a half-time status during an academic period which is either enrolled or billed during the calendar year. The University of Missouri System checks this box if you were half-time or more for at least one term beginning during the year. This information is important in determining eligibility for the Hope Credit.   [top]

 

I misplaced my copy of the Form 1098-T.  How do I get a reprint of my Form 1098-T?

You can electronically access a copy of your Form 1098-T through ToucNet at anytime by logging into Joe’SSunder Finances section and clicking the link "Proceed to TouchNet". If students have trouble accessing their 1098-T, they can call 573.341.4195. Representatives are available Monday-Friday, 8 a.m. to 4:30 p.m. Central Time.   [top]