What has changed with my 1098-T?
In 2017 and prior, Pratt Institute reported QUALIFIED CHARGES in Box 2.
Effective January 1, 2018 the Internal Revenue Service (IRS) is requiring universities to begin reporting what students paid to an educational institution. Payments made prior to 01/01/2018 toward 2018 spring semester qualified tuition will not appear on the Form 1098-T either in 2017 or 2018 for the following reasons:
On Form 1098-T for 2017, Pratt Institute was reporting qualified charges in Box 2. Spring 2018 charges were incurred in November and reported in Box 2 on the 2017 Form 1098-T.
Spring 2018 charges were incurred in November 2017 and reported in Box 2 on the 2017 Form 1098-T. On the 2018 Form 1098-T, Pratt Institute will be reporting qualified payments in Box 1.
Your payment made prior to 1/1/18 cannot be reported in 2018. Payments must relate to the same OTRE (Qualified Tuition and Related Expenses) in the same Tax year.
While the transition can be a bit confusing, nothing has been lost or misreported during the transition from reporting in Box 2 in 2017, to reporting payments in Box 1 in 2018.
How do I get my form?
Your form will be mailed to you by our contracted vendor ECSI. Please visit www.ecsi.net/taxinfo.html for information regarding your form.
What is a Form 1098-T?
Colleges and universities are required under Internal Revenue Code Section 6050S to issue the Form 1098-T for the purpose of determining a tax payer’s eligibility for various tax credits and/or deductions.
Does every student get a Form 1098-T?
Pratt Institute must file a Form 1098-T for each student enrolled for the given calendar year and for whom a reportable transaction is made. However, the IRS does not require Pratt Institute to provide a Form 1098-T for:
- Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program
- Nonresident alien students
- Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships and/or grants
- Students whose expenses are covered by a formal 3rd party billing arrangement
What fees are qualifying for tax purposes?
For purposes of the tuition and fees deduction, qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution. Housing, Meal Plans, Health Insurance, Tuition Insurance, Health Services Fee, and other miscellaneous fees are generally not qualifying expenses for tax purposes. Please reference IRS Publication 970 Tax Benefits for Education for additional guidance. Pratt Institute cannot legally provide tax advice. Please consult with a qualified tax preparer or the IRS if you have tax-related questions.
What amounts are reported on Form 1098-T?
- Box 1 qualified payments made towards qualifying expenses within the calendar year.
- Box 2 represents amounts billed for qualified tuition and related expenses netted against any reductions (Fee Waivers, Remissions) in charges for qualified tuition and related expenses.
- Box 4 represents reductions made to amounts billed for qualified tuition and related expenses that were reported for a prior calendar year.
- Box 5 represents the total amount of scholarships, grants or 3rd Party Sponsor Credits that were processed for the payment of qualified tuition and related expenses.
- Box 6 represents the amount of reductions or refunds made for scholarships or grants that were reported for a prior year.
- Box 8 is only checked if you have been at least a half-time student (6 credit hours) for a least one academic period that began during the calendar year.
- Box 9 is checked if you were enrolled as a graduate student for at least one academic period during the calendar year for which reporting is required.
Do you send a copy of this form to the IRS?
Yes. Section 6050S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires institutions to file information returns to assist taxpayers and the Internal Revenue Service in determining eligibility for the American Opportunity and Lifetime Learning education tax credits. The annual deadline to file the required tax information electronically is March 31, although data may be transmitted earlier.
I lost my 1098-T. What do I do now?
Since you don't attach the 1098-T to your 1040, that's not a problem. You can use your bills and receipts as the backup to claim the credit. You can also get your form from www.ecsi.net/taxinfo.html.
What am I supposed to do with the 1098-T form?
Keep it for your personal records and share it with your tax preparer; Pratt Institute sends your 1098-T information to the IRS. The information contained in the 1098-T will help you to determine if you may claim various tax credits and/or deductions for qualified educational expenses. Please be aware that the 1098-T captures financial information on a calendar year basis (January 1–December 31) and you will likely need your statements of account and other personal receipts (eg. books and supplies) to calculate your tax credits and deductions.
Which expenses qualify for the American Opportunity or Lifetime Learning Credits?
Pratt Institute cannot legally provide tax advice. Please consult with a qualified tax preparer or the IRS if you have questions concerning how to use this form on your taxes.
For additional support please review the following resources and websites: