2018 Form 1098-T Reporting
For the tax year ending December 31, 2018, Penn State will report payments received for qualified tuition and related expenses in Box 1 of the Form 1098-T.
Until recently, the Internal Revenue Service (IRS) allowed universities to choose between two reporting methods in the Form 1098-T: qualified tuition and related expenses paid (Box 1) or billed (Box 2). Penn State and many other universities had elected to report qualified tuition and related expenses billed in Box 2 of the 1098-T Form. However, legislation now requires that universities convert to reporting payments received for qualified tuition and related expenses in Box 1 of the 1098-T Form. Penn State will implement this change for tax year ending December 31, 2018.
Will this Form 1098-T reporting change affect you?
Penn State billed Spring 2018 in December 2017 and reported qualified tuition and related expenses billed in Box 2 of the 1098-T Form for tax year ended December 31, 2017. Since the 2018 Form1098-T includes all tuition and related payments received by the University in 2018, payments received in 2018 relating to Spring semester 2018 will be reported on both the 2017 and 2018 forms. Please review your payment records to ensure proper tax reporting.
When completing your individual tax return, you should use the information on the 2018 Form 1098-T in conjunction with your own payment records. Penn State will release Form 1098-T to students by January 31, 2019, as federally required. For more information, click here.
Penn State cannot provide individual tax advice, please consult your tax advisor with any tax questions.