IRS - Form 1098-T

1098T tax form is another type of 1098 form. It is basically a tuition statement document that contains information from an educational institution. As such, IRS form 1098T gives a student information that determines if they are eligible for a tax credit. These types of tax credits are:

  • Lifetime Learning;
  • American Opportunity.

As a type of 1098 tax form, the 1098 T form meaning is clear. It contains information about fee deduction and tuition. Being enrolled as a student is not a criterion for eligibility. Instead, specific details on the form determine if a student is eligible for any tax credit.

IRS 1098T Information

Determining deductions or education credit can be tricky for a first-timer. A student must ensure they consider the money they paid. In addition, they should ensure that the payment made is deemed to be eligible within any given tax year. Like any other IRS 1098 form, an individual should get their form 1098T if eligible from the school they are enrolled in by 31st January of each year. Therefore, the 1098T form 2021 and 1098T form 2020 were received by qualified students on 31st January in 2021 and 2020, respectively. Unlike a 1098 mortgage interest, 1098 T gives information about an educational institution. Such information includes refunds, reimbursements, scholarships, grants, and adjustments for previous years. In addition, this document usually provides whether a student is enrolled in full-time, part-time, undergraduate, or graduate programs.

Education Credit Claim

The tuition tax form works like the property tax form 1098. It gives a taxpayer important information needed when filing taxes. Additionally, a student can leverage 1098 T TurboTax and their student tax form to determine their tax credit accurately.

Fill & Sign IRS Form 1098-T

Accessing 1098T Tuition Statement

A student may access this document via the internet. This document is available in the student center portal. However, the exact process of accessing each document may vary from school to school. Nevertheless, a student will find information about their scholarship and eligible charges accessible from such portals.

Student Loan Information

A typical 1098T tax credit form usually includes a section known as the student loan tax form. However, this information appears for long-term loans. All loans of short durations do not appear on the 1098T tax form.

Eligible and Ineligible Expenses

The expenses a student makes can be either eligible or ineligible for a tax credit. The qualified expenditures are highlighted below.

  • General registration fees
  • Tuition
  • Health facilities use cost
  • All student body fees, including student center and association
  • Student representation costs
  • ID card costs
  • Nonresident tuition cost
  • Other expenses relating to a program

Likewise, below are some of the ineligible expenses.

  • Parking costs
  • Eating and accommodation costs
  • Fines, penalties, and administrative costs
  • Healthcare service fees
  • Costs of transcripts and similar documentation
  • Costs associated with access to equipment in theater and musicals

A student may disagree with the eligibility or ineligibility of an expenditure. The best way of solving such a problem is for the student to consult their tax preparer for more information.

Fill & Sign IRS Form 1098-T

Please check other IRS forms: