Student Finance

1098T Frequently Asked Questions

Why aren't there amounts in both boxes 1 and 2 on the 1098-T form?
Institutions may elect to report either the aggregate amount of payments received for qualified tuition and related expenses (box 1), or the aggregate amount billed for qualified tuition and related expenses (box 2) during the calendar year with respect to individuals enrolled for any academic period. I paid my qualified tuition and related expenses with student loans. Can I still claim a Hope or Lifetime Learning Tax Credit or the Higher Education Tuition and Fees Deduction?Yes. Loan funds should be considered in the same manner as cash payments when calculating a Hope or the Lifetime Learning Tax Credit or the Higher Education Tuition and Fees Deduction. However, any scholarships, grants, or other non-taxable aid must be deducted from the amount of qualified tuition and related expenses paid.
Can I claim a Hope or Lifetime Learning Tax Credit or the Higher Education Tuition and Fees Deduction for qualified tuition and related expenses paid in advance of when the academic period begins?
Generally, the credit and deduction are available only for payments of qualified tuition and related expenses that cover an academic period beginning the same calendar year in which the payment was made. An exception, however, allows the taxpayer to claim a tax credit, if otherwise eligible, for payment of qualified tuition and related expenses made during the calendar year to cover an academic period that begins in January, February, or March of the following tax year. Consult a tax professional for tax return preparation advice.
My Financial Aid Grants, Scholarships and Sponsors covered my Fees, will I be receiving a 1098T Form.
If all your fees were covered by Grants and or Scholarships or Sponsor payments you will not be receiving a 1098T form, the IRS does not allow deductions of Educational expenses that were paid by Grants, Scholarships or Sponsor payments. If the Grant, Scholarship and Sponsor payments did not cover all your fees, you will receive a 1098T denoting all the component payments plus the educational fees charged. The net of the fees minus the Grants, Scholarships and Sponsor payments will be your net charges for the Tax year.
I did not receive a 1098T form this year. I did attend in Spring and paid my fees in the Tax year but did not attend in the Fall.
The University reports on Charges incurred for the tax year that also includes the Future Spring term. For example spring 2009 semester registration takes place in early December. Charges for spring 2009 which commences in January 2009 are included on the 2008 1098T form. Your individual payment records will serve as proof of payment for your Tax return for the specific tax reporting year you are filing. So if you registered for spring 2008 in December 2007 your spring 2008 charges would have been reported on your 2007 1098T form.
Where should I direct questions regarding 1098Ts?
Please direct your questions to Seawolf Service Center at (707) 664-2308 or to seawolf.servicecenter@sonoma.edu