What is the Form 1098-T?
This is a tax document that is used to report qualified tuition and related expenses in a given tax year and is provided as a guide in the preparation of your taxes. Its purpose is to assist you in determining your eligibility for an education tax credit on your federal income tax return. The Taxpayer Relief Act of 1997 allows certain taxpayers who pay qualified tuition and related expenses to an eligible educational institution to claim an American Opportunity Credit or a Lifetime Learning Credit against their federal income tax liability.
When do I receive my Form 1098-T?
Penn State releases 1098-T forms to students by January 31st , as federally required.
How will I receive my Form 1098-T?
Students will receive the Form 1098-T by electronic delivery or mail. As a current student, you can have immediate access to your 1098-T form online by logging into your Student Center in LionPATH and selecting “Manage My Account/Make a Payment”. This will direct you to your account dashboard where you can opt-in to receive the electronic version of the form under the 1098-T section located at the bottom right-hand corner of the page. If electronic delivery is not selected, then a paper copy will be mailed to your address on file with the university. To verify or update your address, please do so by logging into your Student Center in LionPATH.
I am an International Student; will I receive a Form 1098-T?
Penn State will issue a 1098-T for all international students. You can retrieve your Form 1098-T electronically by following the steps indicated on the question above (How will I receive my Form 1098-T). If you have any questions or have problems retrieving your Form 1098-T, you may submit a request through the “Contact” option on our website at www.bursar.psu.edu.
Where do I find my Form 1098-T for previous years?
1098-T forms for 2016 and beyond will be available electronically through LionPATH. 1098-T forms for 2015 and prior years will not be available through LionPATH. To request a copy of a 1098-T form that is not available in LionPATH, you may submit a request through the “Contact” option on our website at www.bursar.psu.edu.
What information is reported on the Form 1098-T?
Box 1. Is intentionally left blank. Penn State reports tuition billed and not payments received.
Box 2. Shows the total amounts billed in 2016 for qualified tuition and related expenses less any reductions in charges made during 2016 that relate to those amounts billed during 2016. For 2016, the information listed on your 1098-T form includes the amount of tuition billed for the spring 2016, summer 2016, fall 2016, and spring 2017 terms (as applicable).
Please Note: IRS tax form instructions provide that education credits and deductions for a taxpayer's 2016 individual tax return are based upon qualified educational expenses paid during the 2016 calendar year (as opposed to tuition billings reported on the form 1098-T).
Box 3. Shows whether your educational institution changed its reporting method for 2016. It has changed its method of reporting if the method (payments received or amounts billed) used for 2016 is different than the reporting method used for 2015. You should be aware of this change in figuring your education credits.
Box 4. Shows any adjustment made for a prior year for qualified tuition and related expenses that were reported on a prior year Form 1098-T. This amount may reduce any allowable education credit that you claimed for the prior year (may result in an increase in tax liability for the year of the refund). See "recapture" in the index to Pub. 970 to report a reduction in your education credit or tuition and fees deduction.
Box 5. Shows the total of all scholarships or grants administered and processed by the eligible educational institution. The amount of scholarships or grants for the calendar year (including those not reported by the institution) may reduce the amount of the education credit you claim for the year.
TIP: You may be able to increase the combined value of an education credit and certain educational assistance (including Pell Grants) if the student includes some or all of the educational assistance in income in the year it is received. For details, see IRS Publication 970.
Box 6. Shows adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. You may have to file an amended income tax return (Form 1040X) for the prior year.
Box 7. Shows whether the amount in box 1 or 2 includes amounts for an academic period beginning January-March 2017. See Pub. 970 for how to report these amounts.
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 the reporting institution.
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.
Box 10. Shows the total amount of reimbursements or refunds of qualified tuition and related expenses made by an insurer. The amount of reimbursements or refunds for the calendar year may reduce the amount of any education credit you can claim for the year (may result in an increase in tax liability for the year of the refund).
Why is my post 9/11 G.I. Bill reported in Box 5 of the 1098-T?
Veteran's educational benefits are not taxable. However, they can be reported as a grant on Box 5 of the Form 1098-T. IRS Publication 970 (see example on page 7) provides that educational benefits paid directly to the University will reduce the amount of qualified education expenses. Reporting veteran benefits on the Form 1098-T does not indicate that such benefits are taxable. Instead, it only indicates that the individual's qualified educational expenses used for purposes of determining the tax credit must be reduced.
Whom do I contact if I have questions regarding my eligibility to receive the American Opportunity Tax Credit, the Lifetime Learning Tax Credit, or the Tax Deduction for Higher Education Expenses?
Penn State cannot provide individual tax advice and shall not be liable for damages of any kind in connection with this information. Accordingly, you should consult your tax advisor about your specific circumstances.
- Publication 970 – Tax Benefits for Education
- Form 8863: This form must be completed and returned with your 2016 Tax Return if you are eligible for the Education Credits.
- IRS Tax Trails: This is an interactive Tool to help you find answers to general tax questions on tax credits, deductions, taxable income
- IRS Home Page
- US Tax Guide for Aliens