IRS Form 1098-T, Tuition Statement - also known as the IRS Tuition Statement or the College Tuition Tax Form - is a form that provides information about qualified tuition and related fees paid during the tax year. It is filed with the Internal Revenue Service (IRS) by the educational institution and it can be used by the paying student to calculate their education-related tax deductions and credits. This document also reports any scholarships and grants received that may reduce these deductions or credits.
The IRS issued the form and revised it in 2019. Use the link below to download Form 1098-T.
This Tuition Statement shows any adjustments made by the school to qualified expenses reported on the 1098-T of the past year. If previous year's expenses were lower than initially reported, the student may have to pay an additional tax for that year.
Students may claim an education credit on Form 1040. This 1098-T form is required to support any claim for an education credit. This 1098-T Tuition Statement also shows the amount of scholarships and grants paid to the school for the student's expenses, and this amount may reduce the amount of qualified expenses when calculating a student's credit.
If 1098-T shows any adjustments by the school to scholarships and grants reported on a previous year's 1098-T, the student's tax liability for the previous year may be altered, and an amended return may have to be filed by the student.
If you are an eligible educational institution or an insurer, an official IRS 1098-T form Copy A to file with the IRS may be ordered through the IRS website and received by mail. Fillable Form 1098-T copies B and C may be downloaded, printed, and used to satisfy the requirement to furnish the statement to the payer.
If you are an eligible post-secondary student, you will receive a copy of this form every year. This form may be furnished to you by the educational institution or the insurer that reimbursed or refunded qualified educational expenses to you. Qualified expenses include tuition, an enrollment fee, and required course materials.
The IRS provides separate Instructions for Form 1098-T., which you can find on the IRS website or by clicking on this link. Schools can report a student's qualified expenses based on how much the student actually paid (in Box 1) or on how much the school billed the student during the year (in Box 2).
Eligible educational institutions must file a 1098-T tax form for each enrolled student for whom a reportable transaction is made. Insurers must file Form 1098-T for each individual to whom they made reimbursements or refunds of qualified tuition and related expenses.
Fillable Form 1098-T copies B and C are available online in pdf format at the IRS website. The students who paid tuition or related reportable expenses will be provided with this form by January 31, 2020.
Qualified schools must file electronically if they need to file 250 or more returns.
Forms 1098-T on paper shall be filed by February 28, 2020, or March 31, 2020, if filed electronically. Late filing penalties shall apply if the educational institution fails to file a correct return by the due date without a reasonable cause. Here are the penalties:
Taxpayers who mail paper versions of their tax returns should enclose a Form 1096 with their Form 1098-T. You can file information returns electronically via the IRS Filing Information Returns Electronically (FIRE) system or the IRS Affordable Care Act Information Returns (AIR) program.
Form 1098-T is part of the 1098 form series, which consists of five forms, and all of them deal with deductions. The other versions of Form 1098 are the following:
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