Explanation of IRS Form 1098-T
- The IRS Form 1098-T is an information form filed with the Internal Revenue Service.
- The IRS Form 1098-T that you received reports amounts paid for qualified tuition and related expenses, as well as other related information.
- You, or the person who may claim you as a dependent, may be able to take either the tuition and fees deduction or claim an education credit on Form 1040 or 1040A for the qualified tuition and related expenses that were actually paid during the calendar year.
- There is no need to attach Form 1098-T to your tax return.
- All information and assistance that ASU can provide to you is contained in this notice.
- There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.
Amounts Paid for Qualified Tuition and Related Expenses
Box 1 of Form 1098-T reports the qualified tuition and related expenses paid during the calendar year. Qualified tuition and related expenses are sometimes referred to as qualified education expenses, although the terms are not always interchangeable. For purposes of the Form 1098-T provided by Arizona State University, the following categories of charges are included or not included in qualified tuition and related expense
Qualified Tuition and Related Expenses
Adjustments Made For a Prior Year
Box 4 of Form 1098-T reports adjustments made to qualified tuition and related expenses reported on a prior year Form 1098-T in Box 1. The amount reported in Box 4 represents a reduction in tuition paid during a prior calendar year. For example, if you paid Spring semester classes in December and withdrew from classes in January which resulted in a refund, Box 4 reports the decrease in paid tuition due to the withdrawal. The amount reported in Box 4 for adjustments to qualified tuition and related expenses may reduce any allowable education credit you may claim for the prior year. See IRS Form 8863 or IRS Publication 970 for more information.
Scholarships or Grants
Box 5 of Form 1098-T reports the total of scholarships or grants administered and processed by the ASU Financial Aid and Scholarship Services (FASS) during the calendar year. The amount reported in Box 5 does not include:
- Tuition waivers provided during the calendar year due to the student's status as a benefits eligible ASU faculty or staff member or the spouse or dependent of an ASU faculty or staff member.
- Tuition waivers provided during the calendar year due to the student's status as an eligible research or teaching assistant/associate.
- Student loans, for example subsidized, unsubsidized, PLUS, Perkins, and alternative loans.
- Scholarships, grants, reimbursements or other types of sponsorships not administered or processed by ASU FASS.
The amount of any scholarships or grants reported for the calendar year and other similar amounts not reported (because they are not administered and processed by ASU) may reduce the amount of any allowable tuition and fee deduction or education credit that you are entitled to.
Beginning with the 2011 tax year, Veterans Education Benefit amounts received (Post 9/11 GI Bill) will now be included in Box 5. For additional information on Veterans's Education Benefits, please visit either the IRS or the Department of Veterans Affairs website.
Additional detailed information regarding scholarships and grants reported in box 5 is available by logging in to My ASU, selecting the "Finances" tab at the top of the page and selecting the "IRS 1098 T" option. This supplemental information reflects all scholarships and grants by semester and type of aid. This detailed information is supplemental and is not reported to the IRS.
Adjustments to Scholarships or Grants For a Prior Year
Box 6 of Form 1098-T reports adjustments made to scholarships or grants reported on a prior year Form 1098-T in Box 5. The amount reported in Box 6 represents a reduction in scholarships or grants reported for a prior calendar year. The amount reported in Box 6 for adjustments to scholarships or grants may affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. See IRS Form 8863 for how to report these amounts.
Additional Information Reported
There are three additional information boxes that may have a check mark in them.
Box 7 indicates, if checked, that Box 1 includes amounts for an academic period beginning in the next calendar year. For example, if you registered and paid for the upcoming Spring semester during November or December, this box will be marked.
Box 8 shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at ASU for at least one academic period during the calendar year. If this box is marked, you meet one of the requirements for the Hope tax credit. You do not have to meet the workload requirement to qualify for the tuition and fee deduction or the lifetime learning credit.
Box 9 shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential. If you are enrolled in a graduate program, you are not eligible for the American Opportunity credit, but you may qualify for the tuition and fee deduction or the lifetime learning credit.
Attaching Form 1098-T to Your Tax Return
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. The primary purpose of the IRS Form 1098-T is to let you know that ASU has provided 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.
If Your 1098-T is Incorrect
The Social Security Number and address on Form 1098-T were obtained from information provided to ASU, although the address shown on Form 1098-T is irrelevant for IRS income tax filing purposes. The single most important information on the form is your Social Security Number. Your Social Security Number must be correct. Please call 480-965-9834 if the Social Security Number on your 1098-T is not the correct number.