1098-T Tuition Statement for 2014
Understanding the 1098-T
Form 1098-T – Tuition Statement is information that colleges and universities are required to issue to all students. A copy is also provided to the Internal Revenue Service (IRS).
However, as the regulations regarding education tax benefits are very complex, Anderson University cannot provide you with tax advice. You, or your parents, may be eligible for education tax benefits. You are advised to consult IRS Publication 970 – Tax Benefits for Education; IRS Form 8917 – Tuition and Fees Deduction; IRS Form 8863 – Education Credits; or your professional income tax preparer.
As a general rule you use, in the determination of education tax benefits, those Qualified Education Expenses that you actually paid during 2014 after first subtracting Grants and Scholarships. (Loan proceeds credited to your account during 2014 count as payments or amounts paid). The amounts shown on your Form 1098-T do not determine this amount for you.
However, in order to maximize the available tax benefits, it may be to your advantage to treat some of your grants and scholarships has having been used for non-qualified educational expenses thus allowing you to claim more qualified educational expenses under the American Opportunity Tax Credit (AOTC). While grants and scholarships used for non-qualified educational expenses become taxable income to the student, in many cases utilizing the tax credits instead provides for a significantly higher tax benefit. You would be advised to read the IRS Fact Sheet on this topic and to review the examples provided in IRS Publication 970 under the section "Coordination with Pell grants and other scholarships".
Viewing the 1098-T
Your 1098-T is available at http://AccessAU.anderson.edu. Select "AccessAU Academics" and login with your username (generally first initial, middle initial, and last name) and password. Passwords expire every six months. Former students, click here to reset your AccessAU password if you cannot login.
Select "Self Service" then "Campus Finances" and then "View 1098-T". To see the official 1098-T form click the calendar year on the General Tab. To view greater detail of the amounts in each box, select the Box Amount Tab. Each box value is a link allowing you to drill down for a listing of each individual item.
Why is there no amount showing in Box 1?
Schools either report amounts in Box 1 – Payments received for qualified tuition and related expenses or Box 2 – Amounts billed for qualified tuition and related expenses, but not both. Anderson University has elected to report amounts in Box 2. Therefore Box 1 has been intentionally left blank.
There is no amount showing in Box 2 either. Why is that?
Since schools report tuition on the Form 1098-T based on the year in which the tuition was billed, it is likely that your 2014 Semester II tuition was charged to your account late in 2013 and was reported on last year’s Form 1098-T.
In some limited cases your grants and scholarships may have totaled more than your Qualified Education Expenses. If so, the amount of grants and scholarships that exceed your Qualified Education Expenses may be considered taxable income to you. Refer to IRS Publication 970 – Tax Benefits for Education.
If tuition for 2014 was charged to my account in 2013 and therefore reported on my last year’s Form 1098-T, can I still claim a deduction? and How does the IRS know this?
It is not uncommon for schools to charge tuition in one calendar year for a term that does not actually start until the next year. Tuition charged in November 2013 for a term that begins in January 2014, for example. When this happens tuition is reported on the Form 1098-T for the year tuition is charged (2013 in our example) and Box 7 on that year’s Form 1098-T is checked. By checking Box 7 we are notifying the Internal Revenue Service (IRS) that the amount being reported in Box 2 includes tuition charged in the current year that is for an academic period that begins in the following year. This will allow you to take a 2014 education tax benefit even if the tuition was charged to you in 2013 and was reported on your 2013 Form 1098-T. The fact that your tuition was charged and reported on last year’s Form 1098-T does not preclude you from benefiting this year. It is the year that you pay for the tuition that matters.
Where do I report the amounts being listed on the Form 1098-T?
Amounts being reported on Form 1098-T are informational only and are not intended to provide you with the potential amount of your education tax benefit. You will have to determine any education tax benefit amount from a review of the various charges and credits as reported on your student account taking into account what grants and scholarships you received and when you made payments.
Where can I get a detail of my student account transactions?
You are able to access your account information on-line using your AccessAU log on. Select “Self Service” then “Campus Finances”. To view the detail of your student account transactions select “Account Inquiry” and the “Activity” tab.
How do I determine the amount of my education tax benefit if the amounts on Form 1098-T do not?
IRS Publication 970 – Tax Benefits for Education; IRS Form 8917 – Tuition and Fees Deduction; and IRS Form 8863 – Education Credits can be helpful to you and are available on the IRS web site. Because the regulations regarding the education tax benefits are very complex you may need to seek the help of a CPA or other income tax preparer. Unfortunately Anderson University cannot provide you with income tax advice.
As a general rule, the Qualified Education Expenses (as defined by the IRS) that were not covered by your grants and scholarships and that you actually paid in 2014, will be the amounts you will use when completing your tax return. Student loan proceeds credited to your account in 2014 count as amounts paid. Form 1098-T is not intended to calculate this amount for you. You will have to determine this amount from a review of the various charges and credits as reported on your student account.
What if my grants and scholarships are greater than the amount reported in Box 2? Does this mean I do not have an education tax benefit?
Not necessarily. If you had tuition charged to your student account in 2013 for a period of enrollment that began in 2013, then that tuition was reported on your 2013 Form 1098-T and not on this year’s 2014 Form 1098-T. You may well be able to use that portion of the tuition for 2014 that was reported on last year’s Form 1098-T in the determination of your tax benefit.
In some limited cases your grants and scholarships may have totaled more than your Qualified Education Expenses. In that case the amount of grants and scholarships that exceed your Qualified Education Expenses may be considered taxable income to you. Refer to IRS Publication 970 – Tax Benefits for Education.