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About Form 1098-T

Form 1098-T is used by eligible educational institutions and is filed for each student for which a reportable transaction is made. Form 1098-T does not have to be filed in the case that the student does not obtain academic credit from their course. If the student is a non-resident alien the form also does not need to be filed unless the student requests it. Students who have their tuition and other expenses waived or who have their education completely paid for with scholarships and grants do not need to have a 1098-T form filed as well.

Form 1098-T reports amounts billed for tuition and related expenses by educational institutions.The form must be filed by eligible educational institutions for qualified students that the institution bills for tuition and related expenses. Institutions that are a part of a governmental unit are also required to file the form. The same reporting method is expected to be used for all calendar years except in the case that the IRS offers the institution the ability to change their reporting method. Insurers that are in the business of reimbursing or offering refunds for qualified tuition and related expenses are also required to fill a Form 1098-T for each student.

Eligible educational institutions are classified by Section 481 of the the Higher Education Act of 1965 that went into effect on August 5th 1997. Institutions include vocational schools, colleges, universities, or other postsecondary institutions. Most public, private, and non-profit institutions meet the classification of eligible educational institutions.

Qualified tuition and related expenses include any amount paid for a course. It does not include amounts paid for education relating to sports, hobbies, and games except in the circumstance that the course is a part of the student’s degree program or a part of his or her vocational training. Also, room, board, medical expenses, insurance, transportation, living expenses, and family expenses are not included.

Academic credit is defined by the IRS as the credit that is awarded to a student after the completion of a course that leads to a postsecondary degree or other type of educational credential. One Form 1098-T is required to be filled for every student enrolled in an institution for an academic period. Academic periods include semesters, trimesters, and quarters, or whichever particular type of period that the institution uses.

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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

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