What is the 1098T form?
The 1098T form is used to report information to you and to the IRS as required by the Taxpayer Relief Act of 1997. We are required to submit general student enrollment information and financial data for the corresponding calendar tax year. The information we include is student name, address, social security number or tax identification number, enrollment status, and academic status. We also report the amount that we billed you during the calendar year for qualified tuition. We further report any scholarship or grant amounts, and, if applicable, adjustments to prior year qualified tuition and/or adjustments to prior year scholarships.
Is the 1098T a bill?
No, it is a report of amounts you have already been billed for. It is used to help you determine whether you may be eligible for certain federal or state income tax benefits.
Does the 1098T report any income that I need to declare on my income tax forms?
No. However, if financial aid, grants or scholarships exceed the amount of tuition and other qualified expenses, you might need to report the difference as income. Consult a reputable tax advisor for professional advice.
Why did I get a 1098T form?
Claremont McKenna College is required to provide a 1098T to students who are U.S. citizens, were enrolled at least halftime at any point during the calendar year, successfully completed their courses enrolled, and whose eligible tuition and related charges were not completely covered by financial aid. Educational loans are not included in the 1098T totals.
How will I receive my 1098T?
The law requires that we mail your 1098T by January 31 for the prior calendar year just completed. You can expect it to come to your current address on file early in February. You may also access a copy on CASHNet.
Why didn't I get a 1098T form?
We do not automatically prepare a 1098T under these circumstances:
- Your financial aid (not counting loans) is more than the tuition charged for the calendar year
- You are not a U.S. citizen
- You withdrew from all your classes
- You were not enrolled at least halftime for any academic term during the calendar year
- You did not pass your classes
- We may not have your social security number
Fill out a W9S and mail or fax it, or just drop it by the Registrar’s Office. If none of these circumstances apply to you (i.e. you do qualify for a 1098T), federal law requires that you furnish a TIN so that it may be included on an information return filed by APU. You may speak with Student Accounts to see if a 1098T is appropriate for your situation.
I’m a parent. Can I have my student’s 1098T form sent to me?
Students must make all information requests. The student is responsible for providing information to other parties in accordance with FERPA (Family Education Right to Privacy Act). See http://www.ed.gov/policy/gen/guid/fpco/ferpa/index.html.
I paid a different amount than what the 1098T reports. Why is there a difference?
The IRS allows you to deduct the amount you paid for eligible educational expenses during the calendar year. The IRS allows schools to report the amount charged for eligible educational expenses during the calendar year. Because we frequently post Spring charges in late Fall of the prior year, the date that we charge and the date you pay are often in different calendar years.
Also, the 1098T is a report of tuition and other eligible expenses during a calendar year, not the academic year.
Why aren't there amounts in both boxes 1 and 2 on the 1098T 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 tuition and related expenses (box 2) during the calendar year, but NOT BOTH. Once an institution selects a reporting method, that method must be used for all students, and may not be changed without first notifying the IRS.
APU reports in Box 2 the amount we charged to your account during the year.
Can you prepare a one-off 1098T just for me, showing what I paid instead of what you charged?
No. IRS regulations are clear that we must use the same reporting method for all students, no exceptions.
What kinds of tax benefits might I be eligible for?
CMC cannot offer tax advice.
What numbers are reported on the 1098T? What educational expenses are considered as qualified tuition and related expenses?
Qualified tuition and related expenses are:
- Tuition for classes you enrolled in and passed
- Required class fees such as Lab Fees
We report all such charges which were posted to your account on or after January 1 and on or before December 31 of the calendar year.
Generally, they do NOT include:
- Room and board
- Student activities
- Athletics (unless the course is part of the degree program)
- Health Center fees
- Parking fees or vehicle fines
- Other similar personal, living or family expenses.
I paid my tuition and related expenses with student loans. Can I still claim an American Opportunity Tax Credit or Lifetime Learning Tax Credit or the Higher Education Tuition and Fees Deduction?
Yes. Loan funds should be treated in the same manner as cash payments when calculating an educational expense tax benefit. However, any scholarships, grants, or other nontaxable aid must be deducted from the amount of qualified tuition and related expenses paid.