Education Tax Credit
TAX BENEFITS FOR EDUCATION / FORM 1098-T, TUITION STATEMENT
What is IRS Form 1098-T, Tuition Statement?
A 1098-T form is provided by eligible educational institutions that make reimbursements or refunds of qualified tuition and related expenses to enrolled students.
You, or the person who can claim you as a dependent, MAY be able to claim an education credit or tuition & fees deduction on Form 1040 or Form 1040A; Form 1098-T is required as supporting documentation. Retain Form 1098-T for your records.
Clarkson University's Reporting Method
Prior to tax year 2016, the IRS allowed eligible educational institutions to choose between reporting amounts in box 1 OR box 2 on Form 1098-T and Clarkson University chose box 2 (as did approximately 80% of eligible educational institutions). In early 2016, the IRS informed eligible educational institutions that it was instituting a change for tax year 2016 in which all eligible educational institutions were to report amounts in box 1 only. Since Clarkson University’s programming was setup to report amounts for box 2, we started to diligently work toward implementing the new change to become compliant. Since the majority of eligible educational institutions also needed to apply vast IT resources in order to update their programming to become compliant, they stated their concerns to the IRS via a formal letter through NACUBO (National Association of College and University Business Officers); the IRS responded appropriately in the fall of 2016 and delayed the box 1 change until tax year 2017, therefore allowing eligible educational institutions more time to update their programming (in December 2016, the IRS again delayed the change until tax year 2018). Clarkson University has made the decision to report amounts in box 1 for tax year 2016 because we were rather far along with regards to updating our programming at the time of the IRS’ decision to delay the change until tax year 2017 (and ultimately until tax year 2018).
Amounts reported on Form 1098-T
It is important to note that Clarkson University’s academic year starts in the summer/fall and ends in the spring, while a tax year starts on January 1st and ends on December 31st; this difference plays an important role with regards to the amounts reported on Form 1098-T and the amounts used when claiming an education credit or tuition & fees deduction. As per IRS Pub 970, the amount on Form 1098-T, box 1, might be different than the amount you actually paid and are deemed to have paid. Also per IRS Pub 970, when figuring an education credit or tuition & fees deduction, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses.
Backup information pertaining to the Form 1098-T can be sought by emailing firstname.lastname@example.org (we will respond via email, unless instructed to do otherwise). Additional information that you may need can be sought by accessing your student account activity through your PeopleSoft account.
As per IRS instructions, do not contact Clarkson University (or ECSI) to see if you qualify for an educational credit or tuition & fees deduction and /or for help in calculating an education credit or tuition & fees deduction. Information pertaining to education credits and tuition & fees deductions can be found in IRS Pub 970 or at www.IRS.gov or by calling the taxpayer assistance line at 1-800-829-1040 or by consulting a tax professional of your choosing.
Important 1098-T Electronic Consent Information
Clarkson University, in conjunction with ECSI, is offering you the opportunity to receive your Form 1098-T, Tuition Statement electronically. If you would like to receive your Form 1098-T, Tuition Statement electronically, please give your consent by following the link provided below and following the step-by-step instructions:
1098-T, Tuition Statement Electronic Consent: http://www.ecsi.net/gateway/1098t-signup.html?school=85