In accordance with requirements of the Tax Relief Act of 1997, the 1098-T tax credit form is intended to provide you with information to assist you in determining your eligibility for possible American Opportunity Credits or Lifetime Learning Credits. This tax credit form will be mailed to the permanent address of the student on or before January 31 each year. However, you may receive it sooner if you grant consent for us to electronically transmit the form to you. If you have not already done so, please visit the consent page (instructions below).
IRS Publication 970 (Tax Benefits for Higher Education), and Publication 520 (Scholarships and Fellowships) is available from the IRS Web site or by calling 1-800-TAX-FORM.
The 1098-T form is used by eligible educational institutions to report information about their US resident status to the IRS as required by the Taxpayer Relief Act of 1997. As an eligible educational institution, Towson University reports certain enrollment and identifying information regarding US resident students that the university has billed qualified education expenses during each tax year. Included in the 1098-T form are qualified charges that were billed as well financial aid, scholarships, and third party benefits for the corresponding tax year.
2) Why do I need the 1098-T?
The qualified expenses listed on this form may reduce taxes owed for the current filing year, or make you aware of potential qualification to an education credit such as the American Opportunity credit or Lifetime Learning Credit.
3) How do I get the 1098-T?
If you qualify for one in the given tax year, we will mail a paper copy to your permanent home address on file. This mailing will be postmarked by January, 31. If you have not already done so, you may take advantage of our online form that is electronically available earlier than the paper copy. To get the online copy sooner, you must grant consent in the student portal. This electronic process starts in early January. You will be alerted by your campus email once available to view.
To grant consent:
a) Login to Towson Online Services – https://inside.towson.edu/pslogin
b) Click the Self Service link
c) Click the Student Center link
d) Under the Finances section, select “View 1098T”
e) Select the Grant Consent button
4) Why did I not receive a form?
Not all students will receive a 1098-T form for the tax year. You will NOT receive a form in the following cases:
Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program.
Nonresident alien students, unless specifically requested by the student.
Students whose qualified tuition and related expenses are entirely waived or paid entirely with grants, scholarships, or third party benefits.
5) Where can I read more information about The American Opportunity Credit and The Lifetime Learning Credit?
Towson University is unable to provide you with tax advice or to assist with tax filing instructions. To determine your potential eligibility, please consult your tax advisor or the Internal Revenue Service.
8) What do the numbers in each box mean and how do you calculate the numbers within each?
All amounts reported on this form are reported as positive amounts. Each box is designated for certain information per IRS regulations.
• Box 1: The IRS allows for institutions to do one of the following: Report payments received (Box 1); OR report amount billed for qualified tuition and fees. Once the method is selected on how to report, we cannot change this method between calendar years without IRS permission. Towson University elects to use the option whereby we report on amounts billed not on payments received therefore Box 1 will always be blank.
• Box 2: This box includes all qualified tuition and mandatory fees billed for the given student during the tax year. Room and board is NOT a qualified expense. Example: a full time in state student is billed a total of $8,132 for tuition and all mandatory fees during the tax year. Note that the amount reported here specifically pertains to the date when the charges were posted to your account. For instance, the spring semester of each year starts in January; however depending on class registration date the charges for that semester may actually post to your account in November or December. This means that the spring semester may be included in the prior year 1098-T because it was actually charged during that prior year.
• Box 3: This box is checked if Towson University has decided to change its reporting methods to the IRS.
• Box 4: The listed amount here (if any) will show the total of qualified tuition and fees reductions in the current calendar year for charges that were reported in a previous calendar year.
• Box 5: Grants, waivers, scholarships, and third party benefits received in the tax year are listed in box 5. Examples of amounts that might appear here are Pell and other federal grants, state grants and scholarships, tuition waivers, and Towson University grants. Loan amounts are not reported in any box.
• Box 6: The listed amount here (if any) will show the total of any scholarship, grant, or third party benefit reductions in the current calendar year for aid that was credited in a previous calendar year.
• Box 7: This box is checked if the amount in box 2 includes amounts for an academic period beginning January through March. For instance you are enrolled in the mini or spring session, but charges for either of those terms actually posted to your account in the prior year.
• Box 8: Half-time student status
• Box 9: Graduate student status
• Box 10: Towson University does not use box 10.
9) 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. Towson University elects to use the amount billed, therefore box 1 will always be blank.
10) What is the 1098-E?
The 1098-E is a “Student loan Interest Statement” provided by your student loan servicer in each tax year if applicable to you. This form is completely separate from the 1098-T we have discussed above. Towson University does not have any input on the 1098-E because this tax form coincides to any interest paid to a servicer for federal student loans.
You can read more about this form and who to contact regarding it by clicking here – 1098-E
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