Tax Form 1098-T

The Form 1098-T is a tuition statement that colleges and universities are required to issue to most students who paid for “qualified educational expenses” in the preceding calendar year.  Qualified educational expenses include tuition and enrollment fees as well as books, supplies and equipment that are required for your courses. However, the University is not required to prepare Form 1098-T for every student even if they paid for qualified educational expenses.  Please refer to the section below entitled “Why You May Not Receive a Form 1098-T” for more information.

If you are eligible to receive Form 1098-T, then your 2017 Form 1098-T will be available by January 31, 2018

How to Obtain Access to your Form 1098-T:

  • To Receive the Form 1098-T Electronically: By agreeing to the terms of the Student Financial Responsibility Agreement, you have agreed to receive Form 1098-T electronically. To view and download a copy of your Form 1098-T, please log into the Student Administration System and go to Finances> Other Financial…> View 1098-T.

If you have not agreed to the terms of the Student Financial Responsibility Agreement, you may still register to access your Form 1098-T electronically by logging into the Student Administration System. Go to Finances> Other Financial…> View 1098-T. Help within Student Admin System.

Due to the time and effort involved in mailing paper forms, students who receive Form 1098-T electronically will be generally able to access their forms sooner than those students who receive their forms by mail.

  • To Receive the Form 1098-T by Mail: If you have not signed the Student Financial Responsibility Agreement, or otherwise opted to receive the form electronically, your Form 1098-T will be mailed to your mailing/billing address listed on your Student Administration account.
  • Please note that we are unable to email or fax the form to anyone.
  • If you are no longer a student at UConn and need your NetID password reset to access the Student Administration System, please contact UITS Help at (860) 486-4357

 

Why You May Not Receive a Form 1098-T:

Eligible educational institutions are required by the IRS to prepare Form 1098-T for most students who paid for “qualified educational expenses” in the preceding year.  Consistent with IRS Regulations, UConn is not required to provide Form 1098-T to a student in the following instances:

  • Students whose qualified tuition and related expenses posting in the reporting year were entirely waived or paid entirely with scholarships posting in the reporting year (noting that charges for the Spring semester frequently post in the previous reporting year, and are thus reflected in the prior year’s Form 1098-T)
  • Students who do not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement between UConn and the student’s employer or a government entity, such as the Department of Veteran Affairs
  • Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program
  • Students who are nonresident aliens; i.e., not tax residents of the United States. (Note: The University’s general practice has been to provide nonresident aliens with a Form 1098-T, when applicable, even though it’s not legally required to do so.)

 If you fall under one of these exceptions, you will not receive a Form 1098-T from the University.

 

Understanding your Form 1098-T:

IRS regulations permit educational institutions to report either payments received (Box 1) or amounts billed (Box 2). UConn, like the majority of colleges and universities, has elected to report the amounts billed to your student account in Box 2 and this reporting election applies to its entire student population. Therefore, none of the Form 1098-T’s issued by UConn will have Box 1 filled out.

If the University prepares and sends a Form 1098-T to you, then the amount in Box 2 of the form will show the amount that the University billed you in the preceding year for qualified educational expenses.  Qualified educational expenses include tuition and enrollment fees as well as books, supplies and equipment that are required for your courses but it does NOT include room & board, insurance, health service fees, parking permits or fines.

Amounts billed do not represent amounts paid by you during the calendar year. The amount in Box 2 represents amounts billed and posted to your Student Administration account in the 2017 calendar year and there is no consideration given to when the classes are attended.  For example, the 2017 Spring semester tuition bills for undergraduates were generally posted to students’ accounts in November 2016 and, therefore, the amounts billed for that semester were reported in Box 2 of the 2016 Form 1098-T even though the tuition charges were for classes to be attended in 2017.

If you received a tuition waiver, then the amount reported in Box 2 will be the “net” amount you were billed after the waiver.  If your waiver reduced your qualified educational expenses for that year to zero, then you will not receive a Form 1098-T in that year.

Box 5 of Form 1098-T shows the amount of scholarships or grants (other than tuition waivers) you received during the year.

Please note that when claiming educational credits and deductions on your income tax return, you will need to report amounts paid (not billed) for qualified education expenses when determining your allowable tax credit or deduction. Therefore, your fee bills will be the best and most helpful resources for purposes of determining your allowable education tax credits or deductions.   To obtain online access to your fee bills, please click on the following link. Help with Viewing Online Term Fee Bill.

 

Other Important Information and Resources:

Taxable scholarships/fellowships - Please keep in mind that Form 1098-T does not indicate whether you received a taxable scholarship or fellowship.  It is the sole responsibility of the student to report and pay taxes on the taxable portion of any scholarship, fellowship or grant that he/she receives.  This is not the responsibility of the University.  For example, you may have to report taxable income if the total amount of your grants or scholarships received during the year exceeded the amount you paid for qualified education expenses in that year. For more information, please refer to IRS Publication 970.

Section 529 Plans - If you took a distribution from a Health Savings Account (Section 529 Plan) in the preceding year, you will likely receive a Form 1099-Q from the financial institution that administers the plan. This form shows the gross distribution amount, the amount of the distribution that represents earnings on the initial investment, and the amount of your initial investment or cash contribution. We cannot answer any questions related to your Section 529 plan or the taxability of any distributions taken during the year. Please refer to IRS Publication 970- Tax Benefits for Education.pdf and IRS 529 Plans: Questions and Answers 

Eligibility for Education Tax Credits & Deductions – for a general summary of the education tax credits and deductions that you might be eligible for, please refer to the FAQ’s posted on UConn’s tax and compliance website at https://web9.uits.uconn.edu/financesystemsmedia/FAQs_Student_Tax.html

 

Helpful Links

United States Taxpayer Identification Number

1098-T Frequently Asked Questions

Publication 970- Tax Benefits of Education

IRS Form 1098-T Instructions

IRS 529 Plans: Questions and Answers

Choosing a Tax Professional

UConn Tax & Compliance Office