What is a 1098-T Form?
The purpose of the 1098-T is to help you and/or your tax professional determine if you are eligible for the American Opportunity Credit or the Lifetime Learning Credit. The 1098-T is an informational form.
Go paperless! Get your 1098-T electronically!
Have you consented to your 1098-T form electronically? It’s easy!
- Sign into your Self- Service Account
- Click Financial Information
- Self-Service should show Account Summary
- Located on the left next to Account Summary there is an icon that looks like this:
- Click icon (pictured below)
- It will prompt you to click: Receive my 1098 only in electronic format or Withhold my consent. Click Receive my 1098 electronic format and then click the Save button located below options.
By February 1, 2022, your 1098-T link will appear below your preference notice. Just click the link and print as needed! You do not need to consent each year.
Do I have to file my 1098-T form?
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 is greater than your tuition you may want to report it because excess scholarship money may be treated as taxable income on your return!
1098-T Tax Information FAQ
- What is a 1098-T?
The purpose of the 1098-T is to help you and/or your tax professional determine if you are eligible for the American Opportunity Credit or the Lifetime Learning Credit. The 1098-T is an informational form. You are not required to attach IRS Form 1098-T to your tax return.
Claiming the Education Credits on Your Individual Tax Return
You should use the information on the Form 1098-T in conjunction with your own payment records to complete your individual tax return. If you have questions about how to compute an education tax credit, consult your tax professional or refer to the IRS Publication 970 or visit https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers.
Please be sure to review the IRS.gov website and IRS Publication 970 or seeking counsel from a tax professional for advice. Johnston Community College, nor its employees are able to provide tax advice.
What is an education tax credit?
An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund. There are two education credits available: the American Opportunity Tax Credit and the Lifetime Learning Credit. (Please note: if you received scholarships, grants or third-party payments equal to your tuition, you will not receive a 1098-T form.)
What are QTREs?
QTRE stands for Qualified Tuition and Related Expenses. Generally, QTREs include tuition and mandatory fee charges. For 1098-T purposes, only those QTRE charges that relate to the academic terms that occur during the calendar months January through December are reportable in any given reporting year. QTREs do not include housing, meal plans, transportation or insurance charges. To learn more about QTREs, please refer to the https://www.irs.gov/forms-pubs/about-form-1098-T website.
What is included in Box 1? What is a “payment”?
Payments, as reported in Box 1, include any credits that are applied to your student account posted during the calendar year that paid for Qualified Tuition and Related Expenses (QTREs). These include cash, check, wire, credit card payments as well as any loans, scholarships, and grants.
These amounts would be reduced by any reimbursements or refunds made during the reporting calendar year that relate to those payments received during that reporting year.
What is included in Box 5?
This box contains the sum of all scholarships JCC administered and processed for the student’s account during the calendar year. Scholarships that pay for tuition (qualified scholarships) as well as for housing, books, and other expenses (non-qualified scholarships) will be included in this amount. Tuition discounts and payments received from third parties that are applied to student accounts for educational expenses are included in this box.