The IRS Form 1098-T is provided, as required by the IRS, to provide information that may assist you in completing your individual tax return. The information listed on IRS Form 1098-T may be different than the amount you actually paid towards Qualified Tuition and Related Expenses (hereafter known as QTRE). We strongly recommend seeking professional tax assistance when claiming an education tax credit. Regardless of the information provided on the 1098-T, if you choose to claim an education tax credit, you should always keep documentation such as invoices and receipt of payment that supports any claimed tax credit even if you report only what is on IRS Form 1098-T.
How do I obtain a copy of my 1098-T?
Current students can access their 1098-T through WCportal, under the Financial Aid tab. Previously enrolled students will have their 1098-T mail to the address we have on file. If you did not receive a copy or changed mailing address, contact Student One Stop at email@example.com.
How do I obtain documentation of student account breakdown?
Through the WCportal, click on WILpay. The WILpay account will have billing statements and account details to assist in understanding charges and credits applied on your student account for the given tax year.
What if I don’t have a Social Security Number?
International students or others without a social security number will not receive a 1098-T. If you believe you are eligible to file taxes and need a 1098-T, contact Student One Stop at firstname.lastname@example.org.
BOX 1 of IRS Form 1098-T reports the qualified tuition and related expenses paid during the calendar year. Sometimes this is referred to as qualified education expenses, although the two are not always interchangeable. Consult a tax professional for explanation. For purposes of IRS Form 1098-T, Wilmington College has determined, based on interpretation of the limited IRS guidance provided, that the following charges are included or not in qualified tuition and related expenses. 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 qualified tuition and related expenses paid during the year for which you may claim the tax credit. You may include qualified tuition and related expenses that are not reported on IRS Form 1098-T when claiming one of the related credits if you can substantiate payment of these expenses.”
QUALIFIED TUITION & RELATED EXPENSES INCLUDED:
CHARGES NOT CONSIDERED QUALIFIED TUITION & RELATED EXPENSES, AND THEREFORE NOT INCLUDED:
Please note that the timing of each charge and payment/scholarship are important regarding which year they are reported in. Many students have charges from Nov. to Dec. of 2019. Because in 2019 many students had payments larger than their QTRE, the BOX 1 amount for the Spring 2020 term may have been included in the 2019 1098-T. Also, in many of those same circumstances, the student also received scholarships and grants for Spring 2020 that did not post until January 2020. This may cause the 2020 1098-T to have zero in BOX 1 but BOX 5 would be populated. Please consult a tax preparer regarding what this means to your individual tax situation.
BOX 4 of IRS Form 1098-T reports adjustments made to qualified tuition and related expenses calculated in a prior year. The amount reported in Box 4 represents a reduction in tuition billed during a prior calendar year. For example, if you were billed in Nov-Dec 2019 and later had a reduction in the QTRE charges in 2020 (i.e. withdrawal, courses dropped), Box 4 reports the decrease in billed tuition due to the withdrawal or drop. The amount reported in BOX 4 reports the decrease in QTRE from the withdrawal or drop of courses that reduced the QTRE. 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 your tax advisor and/or IRS Form 8863/IRS Publication 970 for more information.
Note: It is possible for the other boxes to be empty and only have a number in BOX 4. This means as stated above that there was a reduction in qualified tuition and related expenses calculated on the 2019 1098-T that was reduced after Dec. 31, 2019 but had no other reportable activity for the 2020 calendar year. Please consult a tax advisor and/or IRS Form 8863 and IRS Publication 970 for assistance.
BOX 5 of IRS Form 1098-T reports the total of scholarships or grants administered or processed by the Office of Student Accounts and/or the Office of Student Financial Aid during the calendar year.
Please note that the timing of each charge and scholarship are important regarding which year they are reported in. Many students have charges from Nov-Dec of 2019. Because in 2019 many students had payments larger than their QTRE, the BOX 1 amount for the Spring 2020 term may have been included in the 2019 1098-T. In many of those same circumstances, the student also received scholarships and grants for Spring 2020 that did not post until January 2020. This may cause the 2020 1098-T to have zero in BOX 1 but BOX 5 would be populated. Please consult a tax preparer regarding what this means to your individual tax situation.
THE AMOUNT REPORTED IN BOX 5 DOES NOT INCLUDE:
Per IRS instruction, Veteran’s Education Benefit amounts received are included in BOX 5.
Sections 3504, 18004, and 18008 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, allow higher education institutions to use certain funds allocated by the Department of Education to support students and higher education institutions with expenses and financial needs related to the coronavirus (COVID-19) pandemic. Based on guidance provided by the Internal Revenue Service (IRS), we have not included any CARES HEERF Funds that were awarded to students in the 1098T. See IRS Frequently Asked Questions concerning CARES HEERF Fund Awards.
BOX 6 of IRS Form 1098-T reports adjustments made to scholarships or grants reported on a prior year Form 1098-T that was 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 the education credit you may claim for the prior year. See IRS Form 8863 for how to report these amounts.
BOX 7 indicates, if checked, that BOX 1 includes amounts for an academic period beginning in the next year (2021). 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 at least one-half of the normal full-time workload for at least one academic period during the calendar year.
BOX 9 shows whether you are considered to be enrolled in a program leading to a graduate level degree, certificate, or other recognized education credential.