You may be eligible to claim tax credits and/or deductions for educational expenses incurred for yourself, your spouse, or your dependent children. In addition, you may benefit from various educational saving plans or accounts.
To learn more about Education Tax credits and Saving options, please click on the following link:
Tax Benefits for Education
(For use when preparing 2014 Tax Returns)
To assist you with the understanding of your 1098T tax statement, we have prepared a list of frequently asked questions (FAQ's) which can be found below. Additional information can be found on the IRS website at http://www.irs.gov/pub/irs-pdf/p970.pdf or http://www.irs.gov/pub/irs-pdf/f8863.pdf or www.irs.gov/newsroom/article/0,,id=205674,00.html .
What is a 1098-T?
In 1997, the Taxpayer Relief Act established two education tax credits and a deduction for student loan interest. These credits are explained in detail in Publication 970 from the IRS.
The 1098-T form is a Tuition Payment Statement that includes information that colleges and universities are required to issue for the purpose of determining a student's eligibility for education tax credits.
What is reported on a 1098-T statement?
The information reported in Box 2 on the 1098-T statement includes tuition and eligible charges (as defined by the IRS) that were posted to your accounting bill between the dates of January 1st and December 31st.
Box 4 includes adjustments to charges on a prior year's 1098-T statement that occurred in this tax year.
The information reported in Box 5 on the 1098-T statement includes any financial aid (excluding loans) that was posted to your accounting bill between the dates of January 1st and December 31st, regardless of the semester for which it was awarded.
Box 5 includes adjustments to financial aid on a prior year's 1098-T statement that occurred in this tax year.
Why is Box 1 blank?
Box 1 is blank because we do not report payments on the 1098-T rather, we report tuition and eligible charges as mentioned above.
What is the deadline for the 1098-T tax forms to be mailed to students?
By federal law, all forms must be postmarked by January 31, 2015.
What makes me eligible to receive a 1098-T?
You are eligible to receive a 1098-T if you incurred charges during the 2014 calendar year that were not reported on the previous year's 1098-T statement.
If your last semester of enrollment was Spring 2014, you were billed for those charges in December 2013, therefore the Spring 2014 charges were included in Box 2 on the 2013 1098-T statement.
I attended FMU, why isn't box 8 checked?
You are required to be at least half-time for one term within the calendar year in order to be eligible for the tax credits provided by the IRS.
A 1098-T statement in no way suggests that you are eligible for a tax credit. 1098-T statements are for informational purposes only. Please speak with a tax professional or consult the IRS website for more information about whether or not you qualify for a credit.
If after reviewing these FAQ's, you still have questions, please don't hesitate to contact us via email at firstname.lastname@example.org.