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 advisor to determine whether you are qualified to claim the education expense
tax credits and deduction.
Can I receive my 1098-T electronically? You may opt in for electronic delivery of your 2018 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 2018 Form 1098-T. (Last day to elect e-form delivery for the 2017 tax year was January 17, 2018.)
When will I receive my 1098-T? 1098-T forms for the 2017 tax year will be issued issued prior to January 31, 2018, 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.
What's new for 2017? Undergraduate students with grant, scholarship, and/or third party funding in excess of eligible charges for the year will receive a 1098T, an optional reporting condition Collin did not exercise in prior years. The change was made to facilitate the 2018 IRS reporting requirement change from Box 2, qualified charges, to Box 1, qualified payments.. For the 2017 1098T reporting cycle, Collin continues to report the qualified tuition and fee charges for the calendar year in Box 2 of the 1098T form but is also providing the forms to students with scholarship, grant, and third party payments (Box 5 of the 1098T) which equal to or exceed the charges.
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 charges 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? The dollar amount reflects 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. For example, if you registered in December 2017 for Spring 2018 term, the charges assessed for the registration would be reported on the 2017 1098-T, since the charges were posted in December of 2017. If you register for the Spring 2018 term on or after January 1, 2018, then those charges would be reported on your 2018 1098-T. (The reporting information will change for calendar year 2018 per IRS requirements, reporting paid amounts rather than charges.)
How do I calculate the amount of the education tax credit? The dollar amount on the 1098-T is the billed amount on the student account in the
specified calendar year. It is not the amount paid. 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 advisor 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 email@example.com. 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? Schools are allowed, and Collin does, report qualified charges for 2017. However,
effective for the 2018 tax year (1098T forms prepared in January 2019), the IRS requirements
change to reporting qualified payments instead of charges. Although the IRS has not
yet published their final rules, Collin plans to report qualified payments on the
2018 Form 1098T. Students are encouraged to pay the balance owed in the same calendar
year as the charges are incurred to simply tax reporting, especially in the 2018 transition
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 Life Long 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 college 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.