Frequently Asked 1098-T Questions | Wake Tech (2024)

The Form 1098-T Tuition Statement is used to report information to the IRS as required by the Taxpayer Relief Act of 1997. The form helps you and the IRS determine your eligibility to claim certain tax credits (e.g., Hope or Lifetime Learning). See IRS Publication 970, "Tax Benefits for Education" for more information.

Wake Tech is required to send the 1098-T to students by January 31 each year summarizing qualified tuition and feesbilledduring the previous year.

Wake Tech isrequired to issue a 1098-T to eligible students by January 31 of each year. If you have consented to receive an electronic version on Self-Service, you will go to Self-Serviceto access and print your 1098-T.If you did not consent to receive an electronic version, your 1098-T will be mailed to you by January 31 to the address we have on file as of mid-January.

In Self-Service, got to "Tax Information," and select the electronic consent option under "1098-T Electronic Consent."

  • Have you consented to receive an electronic version? If so, or if you are not sure, go to Self-Service 1098-Ts to see if you have a statement for the current tax year.If there is a statement on Self-Service and you have consented to receive it electronically, you will not receive a 1098-T in the mail.
  • Do we have a current address on file for you?You can check – and change – your address through WebAdvisor; please update it if it is not current.To view and print your 1098-T, go to Self-Service and consent to receive the electronic version.If the mailing address was the problem, you should now be able to see your 1098-T.

If your Social Security number (SSN) does not appear on the 1098-T or is incorrect, it is because we do not have the information in our system.You are required by the IRS to provide your SSN so that we can include it on your 1098-T.If you fail to provide your SSN to the college, you may be subject to a fine by the IRS.You can correct this by completing a W-9 form and returning it in person to the Cashier's Office in Montague Hall, Room 110, on the Southern Wake Campus, or by mail to:

Wake Technical Community College
Attn: Financial Services
9101 Fayetteville Road
Raleigh NC27603

Once we update your SSN in our system, you should be able to view a corrected 1098-T in Self-Service.We are required to send the 1098-T information to the IRS by March 31. We will continue updating SSN information until we send the file to the IRS.

No.The IRS requires colleges and universities to report total qualified tuition and related expenses "payments received."

The amount in Box 1 is the result of complex calculations performed by our general ledger software and may not correspond to your actual payments to be reported on your tax return.For these reasons, students are required to maintain their own proof of payment records, such as receipts, check copies and bank or credit card statements. You may print your statements by semester in Self-Service, which will detail dates payments were made by semester. Please contact your tax advisor or the IRS for more information.

Please refer to IRS Publication 970, which states the following:

"When figuring an education credit, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses. In most cases, the student should receive Form 1098-T from the eligible educational institution by January 31. However, the amounts on Form 1098-T might be different than the amount you actually paid and are deemed to have paid."

So, the amount reported is not used to validate or reconcile the amount reported on a taxpayer form. It is up to the taxpayer to determine using their records what, in fact, they did pay in qualified expenses.

The 1098-T includestotal qualifiedamounts paid. For purposes of 1098-T reporting, some fees are excluded from this amount. Specifically, neither the College Access Fee nor the Textbook Access Fee is included. Also, the 1098-T is based on the amounts paid from all sources, including Financial Aid, and is limited to theinvoice amounts for the year. You will need to consult your tax advisor or the IRS to determine what expenses are reportable on your tax return.

We do not include books on the 1098-T unless they are charged as part of a course fee (i.e., supply fee). We include only tuition and fees paid to the college. Please consult your tax advisor to determine if books are a deductible expense for tax purposes.

Box 5 shows the amount of scholarships and grants the student received. Box 5 does not include loans. Scholarships and grants reduce the amount of qualified expenses the student can use when calculating a deduction or credit.

The 1098-T is an "information" return, and the amount reported is not necessarily the amount you report for tax purposes. Most questions will need to be answered by a tax adviser. If you need more details on how your amount was calculated, we can provide more details, but we cannot change your 1098-T to agree to your records. Our system uses a formula to calculate the amount based on the amounts recorded in our system. We cannot change the formula, as it is programmed by a third party.

For specific questions about your 1098-T form, call the help line at 919-866-5030 or email [emailprotected].

For questions about what to report on your tax forms, contact the IRS or a tax advisor.

Frequently Asked 1098-T Questions | Wake Tech (2024)

FAQs

Frequently Asked 1098-T Questions | Wake Tech? ›

We must file a 1098-T for you even if you did not share your Social Security Number (SSN) with Texas Tech University and it is not included in your student record.

Is Texas Tech required to send a 1098-T? ›

We must file a 1098-T for you even if you did not share your Social Security Number (SSN) with Texas Tech University and it is not included in your student record.

Does a 1098-T help or hurt? ›

A 1098-T form must also be provided to each applicable student. This form is informational only. It serves to alert students that they may be eligible for federal income tax education deductions or credits. It should not be considered as tax opinion or advice.

What if I think my 1098-T is wrong? ›

The form isn't due to the IRS until Feb. 28 if filed by mail or March 31 if filed electronically. This way, if a student receives an incorrect 1098-T, they could have time to contact the college or university and request a correction before the school sends the information to the IRS.

Can I ignore 1098-T? ›

You are not required to attach IRS Form 1098-T to your tax return. The IRS Form 1098-T is not like the IRS Form W-2 obtained from your employer, which is required to be attached to the tax return filed with the IRS.

Why does my 1098-T not match what I paid? ›

Please note, IRS Publication 970 states that "the amount on form 1098-T might be different from the amount you actually paid and are deemed to have paid." Further IRS Form 8863 instructions state that "The amount of qualified Tuition and related expenses reported on Form 1098-T may not reflect the total amount of the ...

Is it illegal to not file 1098-T? ›

You are not required to attach IRS Form 1098-T to your tax return. The primary purpose of the IRS Form 1098-T is to let you know that CSU Fullerton has provided the required information to the IRS to assist them in determining who may be eligible to claim the tuition and fee deduction or an education credit.

How much of a refund do I get from a 1098-T? ›

The American Opportunity Tax Credit can be worth up to $2,500 for each eligible student. And, because the credit is partially refundable (up to 40%), you (or your parents) could get a refund even if you don't owe any taxes. That's right, the government could send you a check to help with your education expenses.

What am I supposed to do with a 1098-T? ›

The 1098-T form can be kept with your records and does not need to be sent to the IRS with your income tax return as the university sends your 1098-T information to the IRS. More information can be found at the IRS.

Does adding a 1098 increase the refund? ›

These credits may reduce your tax liability and increase your refund, depending on your eligibility and the amount of qualified expenses you paid.

What happens if I forgot to add my 1098-T to my taxes? ›

What will happen if you forgot to include your 1098-T information on your return? The answer is nothing. That's right, the 1098-T is for informational purposes only. It's not similar to a 1099 that must be reported.

Why do I owe taxes after entering 1098-T? ›

Adjustments and scholarships

Box 4 of the form shows any adjustments the school has made to qualified expenses reported on a previous year's 1098-T. If it turns out a previous year's expenses were lower than initially reported, the student may be responsible for additional tax for that year.

How do I get the full $2500 American Opportunity credit? ›

How do I apply for American Opportunity Tax Credit (AOTC)? To claim AOTC, you must file a federal tax return, complete the Form 8863 and attach the completed form to your Form 1040 or Form 1040A. Use the information on the Form 1098-T Tuition Statement, received from the educational institution the student attended.

Is a 1098-T considered income? ›

It's important to remember that the 1098-T is an information form only and does not directly define taxable income or eligibility for a credit. Students may need to provide copies of their bursar bill to their tax preparer to confirm the dates that stipends were refunded.

What if scholarship is more than tuition on 1098-T? ›

Scholarships that paid for non qualified expenses are taxable. Tuition, fees, books and computers are qualified expenses. If box 5 of your 1098-T is more than box 1, TurboTax will automatically treat the difference as taxable scholarship income unless you tell it differently (enter additional expenses).

Who claims the 1098-T student or parent? ›

If you claim a dependent, only you can claim the education credit. Therefore, you would enter Form 1098-T and the dependent's other education information in your return. If you do not claim a dependent, the student can claim the education credit.

Do you have to submit a 1098-T? ›

No, you don't have to report your 1098-T, not unless you want to claim an education credit. However if your grant/scholarship amount (box 5) is more than your tuition (box 1/box 2) you may want to report it because excess scholarship money may be treated as taxable income on your return.

How do I know if I need a 1098-T? ›

Schools are required to send Form 1098-T to any student who paid "qualified educational expenses" in the preceding tax year. Qualified expenses include: tuition. fees that are required for enrollment.

Do all universities send 1098-T? ›

Yes. The Form 1098-T is a form provided to you and the IRS by an eligible educational institution that reports, among other things, amounts paid for qualified tuition and related expenses. The form may be useful in calculating the amount of the allowable education tax credits.

Is a 1098 required? ›

Key Takeaways: Form 1098 is used to report mortgage interest paid for the year. Lenders must issue Form 1098 when a homeowner has paid $600 or more in mortgage interest during the tax year.

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