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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.

  1. January 16th, 2018 at 18:05 | #1

    What size window envelopes are needed for mailing the printed copies if 1098T forms?

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  2. January 16th, 2018 at 19:24 | #2

    The forms will tri-fold and fit perfectly in a #10, 2-window envelope. You
    can purchase these types of envelopes anywhere. We use to buy these envelopes
    from Walmart.

    We can also print and mail on your behalf. We do charge for that service but its
    an option and we can beat most mail houses. Call our sales office at (480) 460-9311
    for an estimate of the cost to have us print and mail.

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  3. Luis R. Rivera
    January 16th, 2019 at 17:20 | #3

    Erick Hi and hope you have a nice X-mas, my question is regarding column K of form 1098-T specifically what it means Solicitation Certification??

    Please provide an answer in order to import the info. to the program, thanks in advance.

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  4. January 16th, 2019 at 17:31 | #4

    Great question. The short answer is that you put a check in that box
    if you solicited the student’s TIN in writing. The long answer is below and
    I copy this from the 1098-T IRS instructions:

    Enter the student’s TIN, as
    provided to you on Form W-9S, Request for Student’s or
    Borrower’s Taxpayer Identification Number and Certification,
    or other form. If you solicited the student’s TIN in writing
    (Form W-9S or other form) for the current year, check the
    box. Also check the box if you obtained the student’s TIN in a
    prior year by making a solicitation in writing (Form W-9S or
    other form) or you obtained the student’s TIN in a prior year
    from his or her financial aid application or other form and in
    either case have no reason to believe the TIN previously
    obtained is incorrect. Check the box if the institution is filing
    the Form 1098-T with nothing in the field for the student’s TIN
    because the institution has no record of a TIN, but only if you
    made a written solicitation for the TIN on or before December
    31 of the year for which you are filing the Form 1098-T. By
    checking the box and filing Form 1098-T with the IRS (for
    electronic filers), you certify under penalties of perjury that
    you have in good faith complied with the standards in
    Treasury Regulations section 1.6050S-1 governing the time
    and manner of soliciting the TIN of the student.

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