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1098-T . . . What you need to know.

 What is a 1098T?  Form 1098-T is a statement of qualified tuition and related expenses. The Internal Revenue Service (IRS) requires Collin College to furnish this information to eligible students and also report the information to the IRS. The 1098-T can be used as one means of proof of enrollment if a tax credit is claimed, and the information on the form may be useful in determining whether a tax credit of the Hope or Lifetime Learning credit may be claimed on Form 8863. For authoritative information, visit the IRS web site at http://www.irs.gov/Forms-&-Pubs or call the IRS at 1-800-829-1040. At the IRS web site you can review:

-- Instructions for 1040 and 1040A

-- IRS Publication 970 "Tax Benefits for Higher Education," which includes information on the Hope credit, the lifetime learning credit, and the tuition and fees deduction.
-- Form 8863 "Education Credits (American Opportunity, Hope and Lifetime Learning Credits)."
-- IRS Publication 17 "Tax Guide for Individuals."

IMPORTANT NOTE:  The IRS operates by calendar year.  Collin College operates by academic year.  Students who intend to file for education tax credits on their income tax are encouraged to pay any account charges in the same calendar year in which the charges are incurred for IRS purposes.

The tax rules regarding eligibility for, calculation of, and limitations on the tuition and fee deduction and education credits can be complex. You may want to consult your tax adviser to determine whether you are qualified to claim the education expense tax credits and deduction.

 

What changed in 2018?  Effective with the 2018 tax year, IRS reporting requirements for educational institutions no longer allow schools to report using Box 2, qualified charges, rather than Box 1, qualified payments.  Beginning with the 2018 1098T forms which will be made available in January of 2019, Collin will report Box 1, payments for qualified tuition and fee charges.  Collin continues to provides 1098T forms to students with scholarship, grant, and third party payments (Box 5 of the 1098T) even if those funds exceed the qualified tuition and fee charges on the student account, and the IRS does not require the institution to provide the form.

 

Can I receive my 1098-T electronically? You may opt in for electronic delivery of your 1098-T. Electronic delivery through the CougarWeb (see step-by-step directions to the right)--it saves time and provides secure delivery of personal identification information. Sign up today for electronic delivery of your 2019 Form 1098-T. (Last day to ensure e-form delivery for the 2019 tax year is January 3, 2020.)

When will I receive my 1098-T? 1098-T forms for the 2019 tax year will be issued issued prior to January 31, 2020, either to the student's electronic address for eDelivery or the student's mailing address of record for paper forms.  For those receiving the forms through the mail, please allow 2-3 weeks for delivery.  If you were eligible for a 1098-T and did not receive one, call 866-428-1098 to request your form.

Does everyone receive a 1098-T?  Per IRS instructions, a 1098-T is not required for every student. At Collin College, students in the following categories will not receive a 1098T:

-- Nonresident aliens who did not provide Collin a federal taxpayer ID number

-- Students with no eligible amounts to report for the calendar year

-- Students who have not provided a permanent mailing address to Admissions

-- Students enrolled in noncredit courses such as continuing education courses.

 

What if I did not provide the school with a Social Security (SSN) or Tax Identification (TIN) number? To provide your SSN/TIN to Collin through CougarWeb, log in using your username and password, then from the Student tab-the Tuition/Payment block, select Student's Taxpayer ID Certification and provide the requested information.  Also, in November of each year, Collin College identifies student accounts which do not include a SSN or an individual taxpayer identification number (TIN). The college then mails a letter to the address of record for each of those students, requesting completion and return of Form W-9S. Students who do not comply with the request may be subject to a $50 penalty assessed by the IRS. In January, qualified tuition charges are filed with the IRS and reported to students via IRS Form 1098-T. Student accounts still missing an identifying number are included in the IRS file and annotated accordingly.  A registration hold may also be placed on your account for incomplete student record information.

How is the dollar amount of my 1098-T determined? Beginning in 2018, Collin reports payments in Box 1. The amount will reflect the payments on the student account which were necessary to pay the qualified tuition and fee charges assessed in the calendar year. The amount reported in Box 1 may not exceed the qualified charges, even if funding in excess of the total charge amount was posted to the student account. Box 5 will continue to report all grants, third party funding, and scholarship amounts paid, even if those amounts exceeded the qualified charges. In the 2018 transition year, changes in qualified tuition and fee amounts for prior year terms will not be reported in Box 4 of the 1098T, but beginning in 2019, those amounts will be reported in Box 4.  Prior to 2018, the dollar amount reported in Box 2 was the actual billed amount on the student account for the specific calendar year, not the payments made or the start date of the term for which the charges are assessed. Amounts reported on the 1098T are based on calendar year activity rather than the year associated with the academic term.  For instance charges and payments posted in December of 2019 for the spring 2020 term will be reported on the 2019 1098T.

How do I calculate the amount of the education tax credit? The dollar amount on the 2017 and prior 1098-T forms was the billed amount on the student account, not the amount paid. Beginning in 2018, the dollar amount listed on the 1098T will reflect the amount paid in the current year for qualified tuition and related expenses.   

For your account detail of tuition and fee charges as well as the payments made, access your student account through Cougar web: 

--In the Tuition/Payment menu, select CougarPay (Pay my Balance)
--Then select Collin College Account Suite
--Then Select Current Account Status

Collin College personnel cannot determine if you qualify for the credit or the amount of the credit. Contact your personal tax adviser for assistance or obtain IRS Publication 970, Tax Benefits for Higher Education, and IRS Form 8863, Education Credit, by calling 1-800-829-1040 or using the IRS link in the sidebar to the right.

 

What if I don't receive my 1098-T? Replacement forms may be requested from Collin's 1098-T partner, ECSI, by calling 866-428-1098 or emailing cservice@ecsi.net.  Eligible students may also view their 1098T information in CougarWeb after January 31.

 

Doesn't the IRS require schools to report payments on the 1098T?   Yes, effective as of the 2018 tax year (1098T forms prepared in January 2019), the IRS required institutions to report qualified payments instead of charges. Students are encouraged to pay the balance owed in the same calendar year as the charges are incurred to simplify tax reporting.  Online payments are posted and dated the date of the transaction, as are payments received in person at cashier office locations.  Payments mailed are posted as of the business date they are received.  Note;  Collin publishes campus hours for the winter holiday.  Mail is not delivered in this window and payments will not be posted as received during the office closure dates.  Online payments during the holiday closure are posted as of the payment date.

 

I'm a Continuing Education (CE) student; will I receive a 1098-T? No, CE students are not furnished a 1098-T. However, CE students may be eligible to use a Lifetime Learning Credit as a tax deduction. You may use receipts provided at the time of payment for your documentation, or print account activity statements from CougarWeb, or ask a cashier at any campus location to print student statements with fee assessment activity for the calendar year.

 

 

The information provided here and available on your student account statements is not intended as legal or tax advice.

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