Student Financial Services Office--1098T Information

The federal government provides 2 types of tax credits for educational expenses paid by you during the tax year. However, not all expenses you pay to the university are considered qualified expenses. In general tuition and fees that are directly related to your attendance and education are allowable. Room and board, insurance, and other personal expenses are generally not allowed. You should review the IRS Publication 970 for more information--or you may consult your tax professional.

 

Please note: The Controller's Office or University staff cannot assist you in tax matters. If you need assistance completing your taxes, you should consult with a qualified tax specialist or a CPA accounting firm.

 

The following FAQ is provided to assist you with some of the general questions that you may have regarding the 1098T form and is not intended to be provided as advice in completing your tax return.

 

Some Frequently Asked Questions

What is a 1098T?

Educational institutions are required to report to students the amounts of qualified tuition expenses that were billed to them during the 2011 calendar year. This form will assist students in determining if they qualify for an educational tax credit.

What do the amounts in each box indicate?

Box 1 is used for institutions who report on the amount paid by students. The University of North Florida does not report on amounts you paid, so box #1 will be blank on the form you receive from the University. You should keep your receipts and claim on your tax return the amount you paid out-of-pocket towards qualified educational expenses.

 

Box 2 reports the amount of qualified tuition and related expenses that were assessed to your account during the 2012 calendar year. The figure reported here is the amount the University assessed you for these fees and does not necessarily represent the amount you paid toward qualified expenses during this tax year. You should keep your receipts and claim on your tax return the amount you paid out-of-pocket towards qualified educational expenses.

 

Box 3 reports on whether or not the University has changed its reporting method. We have not made any reporting changes.

 

Box 4 reports on any adjustments made during the 2012 tax year for qualified tuition and related expenses that were reported on a prior year 1098T. For example if you registered for 15 hours in November 2011, we reported that amount on your 2011 1098T.  If you dropped 3 hours in 2012, that change would be recorded as an adjustment from what we reported last year to the IRS.  For most students this box will be blank.

 

Box 5 reports the amount of grants, waivers, and scholarships you received during the 2012 calendar year.

 

Box 6 reports the amount of any adjustments made during the 2012 tax year for grants, waivers and scholarships you received in a prior tax year.

 

Box 7 is checked to notify you and the IRS that some of the amount indicated in Box 2 relates to a semester that begins in the first quarter of 2013.

 

Box 8 will be checked if you were enrolled at least half-time (6 credit hours) for one semester.

 

Box 9 will be checked if you are a graduate student. This will identify you as already having a bachelor’s degree.

What's the difference between the American Opportunity Credit and the Lifetime Learning Credit?

The American Opportunity (formerly Hope Scholarship) Credit  is available for the first four years of post-secondary education. If you meet the requirements as a student you may qualify for a tax credits. You can claim 100 percent  of the first $2000 you paid and 25 percent of the second $2000. (for example, if your expenses were $3000, your credit would be $2250). There is an income restriction and you should be aware that the credit is phased out for people in certain income tax brackets.  Unless Congress extends the tax credit, the American Opportunity tax credit is available for amounts paid through 2012 only.  The Hope Scholarship or the Lifetime Learning credit would be available after 2012.

 

The Lifetime Learning tax credit is available to everyone. You may claim 20 percent  of the first $10,000 paid ($2000 maximum) and that is per tax return, not per student. There are also income restrictions on the Lifetime Learning tax credit.

 

Comparison of Education Credits

Comparison of Education Credits
American Opportunity (formerly Hope Scholarship) Credit Lifetime Learning Credit
Up to $2500 credit per eligible student Up to $2,000 credit per return
Available ONLY for the first 4 years of post-secondary education are completed Available for all years of postsecondary education and for courses to acquire or improve job skills
Available ONLY for 4 tax years per eligible student (including any years the Hope credit was claimed) Available for an unlimited number of years
Student must be pursuing an undergraduate degree or other recognized education credential Student does not need to be pursuing a degree or other recognized education credential
Student must be enrolled at least half time for at least one academic period beginning during the year Available for one or more courses
No felony drug conviction on student's record Felony drug conviction rule does not apply
Qualified expenses include tuition and fees required for enrollment, books, equipment and supplies (books do not need to be purchased at  the institution) Qualified expenses include tuition and fees required for enrollment, and course-related books, equipment and supplies required to be paid at the institution
Payments for the qualified expenses made in 2012 for 2012 academic terms and terms beginning in the first 3 months of 2013 Payments for the qualified expenses made in 2012 for 2012 academic terms and terms beginning in the first 3 months of 2013

 

Who Can Claim the Credit

Generally, you can claim an education credit if all three of the following requirements are met:

  • You pay qualified education expenses of higher education.
  • You pay the education expenses for an eligible student.
  • The eligible student is either yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.

For more information on these credits, please check these websites--IRS Tax Information for Students and Tax Benefits for Education.

Do I report the amount in the Box 2 on my tax return?

NO. This is the amount that we are reporting to the IRS that we billed you for this during 2012, not that you paid that amount

I received scholarships, grants, or waivers. How do I calculate what I paid?

You need to keep your receipts for accurate reporting. You can stop into the Cashier’s Office for duplicate receipts.

I lost or didn?t receive my 1098T. Can I obtain another copy?

You can print another copy of your 1098T via myWings. Click on the Student tab, then "Tax Information."  Enter the tax year, the form will display.

Who do I call for more information?

There are a number of places for you to go to obtain additional information. Please note that the staff at UNF cannot assist you in determining the amount you can claim for a tax credit. Your tax professional should be able to help you determine if you qualify. In addition, you can call the IRS for assistance. Their toll free number is (800) 829-1040. The IRS also has a number of forms and publications that will help you. For instructions on the 1098T visit the IRS website.

How do I contact the Student Financial Services Office?

For questions related to the amounts displayed on the 1098T please contact send an e-mail to the Cashier's Office

Other excellent websites on educational tax credits include