1098-T Information for Tax Year 2018

Frequently Asked 1098-T Questions

1098-T Information for Tax Year 2018

  • The IRS Form 1098-T is an information form filed with the Internal Revenue Service.
  • The IRS Form 1098-T that you received reports amounts paid for qualified tuition and related expenses, as well as other related information.
  • You, or the person who may claim you as a dependent, may be able to take either the tuition and fees deduction or claim an education credit on Form 1040 or 1040A for the qualified tuition and related expenses that were actually paid during the calendar year.
  • There is no need to attach Form 1098-T to your tax return.
  • All information and assistance that University of St. Francis can provide to you is contained in this notice.
  • There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.

Due to federally mandated tax reporting requirements effective for calendar year 2018, USF will now report all payments for qualified tuition and related expenses in Box 1. Please note this is different from prior years where only “billed” information for qualified tuition and related expenses was reported in Box 2.

Amounts Paid for Qualified Tuition and Related Expenses

Box 1 of Form 1098-T reports the qualified tuition and related expenses paid during the calendar year. Qualified tuition and related expenses are sometimes referred to as qualified education expenses, although the terms are not always interchangeable. For purposes of the Form 1098-T provided by University of St. Francis, the following categories of charges are included or not included in qualified tuition and related expense

Qualified Tuition and Related Expenses
Included Not Included
  • Tuition
  • Course or Program Fees
  • Technology Fees
  • Student Activity Fees
  • Family Associate Fees
  • Graduation Application Fees
  • Other mandatory fees
  • Late Charges
  • Application Fees
  • Health Insurance Fees
  • Payment Plan Fees
  • Room and Board Charges
  • Library Fines
  • Parking Permit Fees

Box 2: no longer used.

Box 3 will be checked because University of St. Francis changed our reporting method for 2018.

Adjustments Made For a Prior Year
Box 4
of Form 1098-T reports adjustments made to qualified tuition and related expenses reported on a prior year Form 1098-T in Box 2. The amount reported in Box 4 represents a reduction in tuition billed during a prior calendar year. For example, if you were billed for Spring semester classes in December and withdrew from classes in January, Box 4 reports the decrease in billed tuition due to the withdrawal. The amount reported in Box 4 for adjustments to qualified tuition and related expenses may reduce any allowable education credit you may claim for the prior year. See IRS Form 8863 or IRS Publication 970 for more information.

Scholarships or Grants
Box 5
of Form 1098-T reports the total of scholarships or grants administered and processed by the USF Financial Aid Services during the calendar year.

The amount of any scholarships or grants reported for the calendar year and other similar amounts not reported (because they are not administered and processed by USF) may reduce the amount of any allowable tuition and fee deduction or education credit that you are entitled to.

Adjustments to Scholarships or Grants For a Prior Year
Box 6
of Form 1098-T reports adjustments made to scholarships or grants reported on a prior year Form 1098-T in Box 5. The amount reported in Box 6 represents a reduction in scholarships or grants reported for a prior calendar year. The amount reported in Box 6 for adjustments to scholarships or grants may affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. See IRS Form 8863 for how to report these amounts.

Additional Information Reported
There are three additional information boxes that may have a check mark in them.

Box 7 indicates, if checked, that Box 1 includes amounts for an academic period beginning in the next calendar year. For example, if you registered for the upcoming Spring semester during December, this box will be marked.

Box 8 shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at USF for at least one academic period during the calendar year. If this box is marked, you meet one of the requirements for the Hope tax credit. You do not have to meet the workload requirement to qualify for the tuition and fee deduction or the lifetime learning credit.

Box 9 shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential. If you are enrolled in a graduate program, you are not eligible for the American Opportunity credit, but you may qualify for the tuition and fee deduction or the lifetime learning credit.

Attaching Form 1098-T to Your Tax Return

You are not required to attach IRS Form 1098-T to your tax return. The IRS Form 1098-T is not like the IRS Form W-2 obtained from your employer, which is required to be attached to the tax return filed with the IRS. The primary purpose of the IRS Form 1098-T is to let you know that ASU has provided required information to the IRS to assist them in determining who may be eligible to claim the tuition and fee deduction or an education credit.