About Your 1098-T Form

Provided by the LBC Business Office

The 1098-T provides part of the information you need to claim education tax benefits provided by the American Opportunity and Lifetime Learning Tax Credits. The Form 1098-T should be used along with the taxpayers own records of tuition and fee amounts paid to complete IRS Form 8863 to claim the tax credit.

This information is provided as required by the IRS and does not represent tax advice from the University. The taxpayer should refer to relevant IRS forms and publications or to their tax advisor and should not contact the College for explanations relating to eligibility requirements or calculations of any allowable education tax credit.

The IRS requires that the university must report either Amounts Billed in 2017 or Amounts Paid in 2017. LBC reports Amounts Billed (Box 2). What is reported in Box 2 may represent an amount other than the amount actually paid by the student in 2017.

Due to Academic Years not corresponding to Tax Years, information on your 1098-T may be confusing. Below are explanations of each box on the 1098-T to help clarify the financial data reported. 

Box 1. 

Will contain NO information. LBC will be using the Amounts Billed option (see above).

Box 2. 

Shows the net amounts billed for tuition and qualified fees in calendar year 2017. Any new charges posted in 2017 relating to prior years may also be included. 
Non-Qualified fees include room and board, technology. Books are also not included in Box 2. 

Box 3. 

This box will not be checked. Our reporting method has not changed.  

Box 4. 

Shows any reductions in charges that were reported on a prior year 1098-T. 

Box 5. 

Shows the total of all scholarships, grants and waivers processed by LBC in 2016. Note that most Spring 2017 charges were posted in 2016 and would not be included in Box 2, however, most Spring 2017 grants and scholarships were posted in 2017 and, therefore, would be included in Box 5. This could result in amounts in Box 5 being larger than Box 2! 

Box 6. 

Shows any reductions in scholarships, grants, or waivers that were reported on a prior year 1098-T. 

Box 7. 

If this box is checked, the amount in Box 2 contains charges posted in 2017 for the Winter or Spring 2018 semester. 

 

FAQs about the 1098-T

What is the IRS Form 1098-T?

The Form 1098-T is a statement that colleges and universities are required to issue to certain students. It provides the total dollar amount billed to your student account for what is referred to as qualified tuition and related expenses in a single tax year.

It’s After January 31 and I haven’t received a 1098T. When I asked my college why I did not receive my 1098-T form they informed me that it was because I do not qualify for it. Is that true?

For 2017 an eligible educational institution is not required to provide the Form 1098-T to you in certain circumstances, for example: 

  1. Nonresident alien students, unless the student requests the institution to file  Form 1098-T,
  2. Students whose tuition and related expenses are entirely waived or paid entirely with scholarships or grants, or
  3. Students for whom the institution does not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement with the student’s employer or a government agency, such as the Department of Veterans Affairs or the Department of Defense.
Why don’t the numbers on Form 1098-T equal the amounts I paid to LBC during the year?

There are potentially many reasons for this discrepancy. First, the amount in Box 2 only represents amounts billed for qualified tuition and related expenses and does not include charges for room and board, and travel, for example, though important, are not considered mandatory education expenses for tax purposes. Secondly, Form 1098-T reports amounts that the College billed you in a certain year, and not necessarily amounts that you actually paid during that year. Institutions are allowed to report either payments received or amounts billed. LBC, like the majority of colleges and universities, has elected to report the amounts billed to your student account and this reporting election applies to its entire student population. The best and most accurate source of information about the amounts that you paid for qualified tuition and related expenses will be your statements.

Does the 1098-T include charges for books?

No, Box 2 of Form 1098-T does not include expenses for books. You should consult with your tax advisor to determine if payments for books, equipment or fees should be considered when preparing your income tax returns and determining eligibility for education tax credits or deductions.

What semesters are included in my Form 1098-T?

Depending on when you registered for classes, your Form 1098-T could include charges for different semesters. Charges and payments are recorded on a 1098T for the calendar year January-December 2017.

How do I prepare my tax returns without a Form 1098-T?

Form 1098-T reports your qualified tuition and related expenses on an “amounts billed” basis. When you are determining your eligibility for education related tax credits and deductions, you will need to report amounts paid (not billed) for qualified education and related expenses.  Therefore, your statements will be the best and most accurate source of information for amounts paid for qualified education and related expenses. This is true regardless of whether you receive a Form 1098-T or not.

My accountant says I need a Form 1098-T with information in Box 1 (amounts paid). I need an updated form?

IRS regulations permit educational institutions to report either payments received (Box 1) or amounts billed (Box 2). LBC, like the majority of colleges and universities, has elected to report the amounts billed to your student account in Box 2 and this reporting election applies to its entire student population.

Your statements reflect payments posted to your account in the calendar year, and you may wish to provide them to your accountant in addition to your Form 1098-T.

The information on my Form 1098-T (Box 2) is wrong. My amount is higher.

If a tuition waiver has been posted to your account, that amount is deducted from the total amount of qualified tuition and related expenses that were billed and reported in Box 2. Tuition waivers are not included in Box 5 (scholarships/aid), but are instead netted against the tuition expense thereby decreasing the amount reflected in Box 2.

My SSN is wrong on my Form 1098-T. Can I have a new one sent to me?

If your SSN is incorrect, you will need to complete Form W-9 and deliver it in person or via fax to the Business Office at (717) 560-8216 to request that an updated Form 1098-T be issued. The updated form will be posted to your Student Account on the Student Portal.

I can’t get access to my Form 1098-T because I have graduated and have forgotten my access information.

Please contact the Help Desk at 717-560-HELP.

I don’t understand what I’m supposed to do with this Form 1098-T. HELP!

We are unable to provide tax advice. For guidance you may want to consider IRS Publication 970.pdf.pdf in addition to choosing a Tax Professional.