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University Bursar - What is the IRS Form 1098-T?

Educational institutions use the IRS Form 1098-T to report enrollment and financial information about their students to the IRS.

Purpose

The purpose of IRS Form 1098-T is to assist you in determining if you are eligible for one or more educational tax credits.

Reportable Transactions

University of Illinois reports the payments received for qualified tuition and related expenses from all sources during the calendar year in Box 1 of Form 1098-T, and the total amount of scholarships and grants in Box 5 (up to $5,250 of graduate level tuition and fee benefits awarded to Graduate Assistants (GAs) and employees are reported in Box 5 of the IRS Form 1098-T; amounts exceeding $5,250 are reported on IRS Form W-2). 

Scholarships and Grants

The reporting of scholarships and grants on Form 1098-T does not determine the taxability of those payments; it is the student’s responsibility, not the University’s, to determine the taxability of scholarships, fellowships and/or grants received.  

Blue Box Triangle Exclamation For complete information about education tax credits, see the current versions of IRS Publication 970, Tax Benefits for EducationForm 8863, Education Credits, and Form 1040 or 1040A Instructions, or consult your tax advisor. For instructions on completing the form, see the current version of IRS Form 1098-T.  The IRS provides an interactive online service that can help you determine if you are eligible for a tax credit.  

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Keywords:taxpayer relief act, tax form, Educational Tax Credit, American Opportunity, dependents, TRA, Lifetime Learning Credit, LLC, AOTC university bursar paymybill, W9S   Doc ID:90471
Owner:Kathy K.Group:University of Illinois System
Created:2019-03-19 14:14 CDTUpdated:2020-08-31 10:09 CDT
Sites:University of Illinois System
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