Form 1098-T Information
Caution: The below content is general information only and should not be taken as tax or legal advice. If you have any 1098-T tax-related questions regarding the tax credit, eligibility, reporting your tax credit on your tax return, etc, please contact a tax professional or the IRS.
Changes to 2018 IRS Form 1098-T
In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) we billed to your student account for the calendar 2017 year. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, we will report in Box 1 the amount of QTRE you paid during the year.
Depending on your income (or your family’s income, if you are a dependent), whether you were considered full or half-time enrolled, and the amount of your qualified educational expenses for the year, 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 used for calculating the education tax credits that a taxpayer may claim as part of your tax return.
Northeast Wisconsin Technical College is unable to provide you with individual tax advice, but should you have questions, you should seek the counsel of an informed tax preparer or adviser.
Below is a blank sample of the 2018 Form 1098-T, that you will receive in January 2019, for your general reference. For more information about Form 1098-T, visit https://www.irs.gov/pub/irs-pdf/f1098t.pdf.
What is the IRS Form 1098-T?
IRS Form 1098-T, is entitled "Tuition Statement," and contains information to assist the IRS and you in determining if you are eligible to claim educational related tax credits such as the American Opportunity Credit and Lifetime Learning Tax Credit.
The Tax Relief Act of 1997 states that educational institutions, such as Northeast Wisconsin Technical College, are required to file informational returns with the IRS indicating a student's enrollment, and report either amounts billed, or payments received for qualified tuition and related expenses.
In compliance with IRS guidelines, the 1098-T form the student receives is information that was sent to the IRS by Northeast Wisconsin Technical College. This form serves as informational purposes only. It is informational return for your personal records, and is not required to be submitted with your tax return.
Why didn't I receive a form 1098-T?
In compliance with the IRS guidelines, NWTC is not required to file Form 1098-T or furnish a statement for:
- Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program.
- International (foreign) students who are not U.S. residents for tax purposes.
When and where will the Form 1098-T be available?
IRS regulations require colleges to have the Form 1098T available electrically by January 31 each year. For students who have not opt in on paperless Form 1098T, the statements will be mailed to the current address on file and post marked by January 31.
For eligible students who were issued a Form 1098T will be able to access the electronic Form 1098T online through My.Financials. Please log into your student portal, under Finance, click and log into My.Financials or log in under www.nwtc.edu/MyFinancials.
What information is on the Form 1098-T?
Box 1: The total payments, including loans, from any source received by an eligible educational institution during the calendar year that paid for qualified tuition and related expenses less any reimbursements or refunds made during 2018 that relate to payments received during 2018.
The amount in Box 1 will not equal to or sum to the charges paid for calendar year 2018 because all charges are not considered qualified tuition and related expenses as defined by the IRS.
Example: Per IRS guidelines, books, room and board, and other personal living expenses are not reported on the Form 1098T.
If you registered for and paid for Spring 2018 classes in calendar year of 2017, those payments will not be included in the 2018 Form 1098T.
If you register and pay for Spring 2019 classes in the calendar year of 2018, those payments will not be included on the 2019 Form 1098T.
Box 2: Reserved. Box 2 is blank because the IRS eliminated the option of reporting amounts billed. Starting with the 2018 tax year, schools have to report in Box 1 (payment received).
Box 3: Shows whether your educational institution changed its reporting method for 2018. It has changed its method of reporting if the method (payments received) used for 2018 is different than the reporting method (amounts billed) for 2017. You should be aware of this change in figuring your education credits.
Box 4: Shows any adjustment made by an eligible educational institution for a prior year for qualified tuition and related expenses that were reported on a prior year Form 1098T. This amount may reduce any allowable education credit that you claimed for the prior year (may result in an increase in tax liability for the year of the refund). See "recapture" in the index to Pub. 970 to report a reduction in your education credit or tuition and fees deduction.
Box 5: Shows the total of all scholarships, grants, and third party payments administered and processed by the eligible educational institution. The amount for the calendar year (including those not reported by the institution) may reduce the amount of education credit you claim for the year.
Box 6: Shows adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year.
Box 7: Shows whether the amount in box 1 includes amounts for an academic period beginning January-March 2019. See Pub. 970 for how to report these amounts.
Box 8: Shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at the reporting institution.
Where can I find more information regarding the tax credits and deduction for qualified higher education expenses?
For information about eligibility and filing for the credits, please refer to IRS Publication 970, Tax Benefits for Higher Education, by visiting the IRS Website or by calling the IRS at 1-800-829-1040.
Can the college give me tax advice?
It is important to note that the college cannot provide individual income tax advice. If you have any 1098-T tax-related questions regarding the tax credit, eligibility, reporting your tax credit on your tax return, etc, please contact a tax professional or the IRS.
What if I have more questions?
NWTC is unable to answer any tax-related questions or provide any tax advice. All information and assistance that NWTC can provide is contained in the 1098-T Tuition Statement. The content of this notice is not intended as legal or tax advice.
For tax specific questions, please contact the Internal Revenue Service (IRS) at 1-800-829-1040 or your personal tax advisor for further assistance.
The web links below provide more detailed information about the Hope Tax Credit and the Lifetime Learning Tax Credit.
This information is not intended as legal or tax advice. Individuals should obtain IRS Publication 970, "Tax Benefits for Higher Education," or contact a tax practitioner about personal income tax situations.