Form 1098-T Tuition Statement

What is the form 1098-T?

The 1098-T is used to report information to the IRS as required by the Taxpayer Relief Act of 1997. Eligible educational institutions are required to submit the student’s name, address and taxpayer identification number, enrollment and academic status, amounts pertaining to qualified tuition, related expenses, and scholarships and/or grants, taxable or not. This form is for informational purposes only. While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all the information needed to claim a tax credit.

Important IRS update:

The IRS is now requiring colleges and universities, starting with the 2018 tax year, to report in Box 1 (payments received). Previously, Southwest Texas Junior College was reporting in Box 2 for amounts billed.

In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) we billed to your student account for the calendar (tax) year. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, we will report in Box 1 the amount of QTRE paid during the year.

Depending on your income (or your family’s income, if you are a dependent), whether you were considered full or half-time enrolled, and the amount of your qualified educational expenses for the year, you may be eligible for a federal education tax credit. (You can find detailed information about claiming education tax credits in IRS Publication 970, page 9.)

The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863 – the form used for calculating the education tax credits that a taxpayer may claim as part of your tax return.

Southwest Texas Junior College is unable to provide you with individual tax advice, but should you have questions, you should seek the counsel of an informed tax preparer or adviser.

Below is a blank sample of the 2023 Form 1098-T, that you will receive in January 2024, for your general reference. For more information about Form 1098-T, visit https://www.irs.gov/forms-pubs/about-form-1098-t.

How do I opt-in/access my 1098-T form?

Students are encouraged to “opt-in” to view their electronic 1098T form. Students can print this form and share it with their tax accountant etc. To “opt-in” please log in to Self-Service; select Tax Information; select the first option to receive your 1098 in electronic format, “By selecting this option, I agree to receive my official 1098E and/or 1098T only in electronic format by accessing the web and viewing/printing”.

Why did I receive a 1098-T and what am I supposed to do with it?

In January of each year, Southwest Texas Junior College mails an IRS Form 1098-T to all students who had qualified tuition and other related educational expenses during the previous calendar year. This form is informational only and should not be considered as tax opinion or advice. It serves to alert students that they may be eligible for federal income tax education credits. Receipt of Form 1098-T does not indicate eligibility for the tax credit. To determine the amount of qualified tuition and expenses paid, and the amounts of scholarships and grants received, a taxpayer should use their own financial records. It is up to the taxpayer to determine eligibility for the tax credits.

Why didn’t I receive a 1098-T?

The IRS does not require us to generate a 1098t form for the following:

• International students (unless requested with SSN and/or TIN on file)
• Students enrolled in non-degree programs
• Students who did not have payments for qualified tuition and related expenses

What do the boxes on the 1098-T mean and why is there nothing in Box 2?

• Box 1- Payments Received for Qualified Tuition and Related Expenses. The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year. The amount reported is not reduced by scholarships and grants reported in box 5.

• • Payments received in the prior calendar year will not appear in Box 1 even if the semester started in the 2020 calendar year.
  • Box 1 may be reduced by amounts billed in the previous calendar year for semesters starting in the 2020 calendar year.
  • To review all payments and other credits applied to your account during the year, please log into your Self-Service account.  Under the Student Finance heading select Account Activity.

• Box 2- Starting with the 2019 tax year, this box will now be blank. 
• Box 3- This box will be checked since Southwest Texas Junior College did change its method of reporting for the calendar year.
• Box 4- The amount of any adjustments made to qualified tuition and related expenses reported on a prior year Form 1098-T. This amount may reduce any allowable education credits students may claim for the prior year. See IRS Form 8863 or IRS Publication 970 for more information.
• Box 5- The total amount of scholarships or grants paid and processed by Southwest Texas Junior College during the calendar year. This may also include scholarships and grants posted in the reporting year for a prior year.
• Box 6- The amount of any adjustments made for prior year scholarships or grants. This amount may affect the amount of any allowable tuition and fees deduction or education credit students may claim for the prior year. See IRS Form 8863 or IRS Publication 970 for more information.
• Box 7- If checked indicates that the amount reported in Box 1 includes amounts paid for an academic period beginning in the next calendar year. (for example, payments made in December 2020 for terms beginning January – March 2021) See IRS Publication 970 for more information.
• Box 8- Indicates whether students are considered to be carrying at least one-half the normal full-time workload for their course of study at Southwest Texas Junior College.
• Box 9- Indicates whether a student is considered a graduate student.
• Box 10 - This box will be blank.

What educational expenses are considered as qualified tuition and related expenses?

Qualified tuition and related expenses include undergraduate and graduate tuition, and student activity fees. The cost of course-related books and supplies, may qualify in certain circumstances.

Expenses that do not qualify include room and board, insurance, medical expenses, and various fees and charges.

See IRS Form 8863 or IRS Publication 970 for more information.

I paid my qualified tuition and related expenses with student loans. Can I still get credit?

Loan funds should be considered in the same manner as cash payments. The credit is claimed in the year in which the expenses are paid, not in the year in which the loan is repaid.

How can I see the activity on my student account for the calendar year?

Students can see the activity on their student account by logging into Self-Service, going to Student Finance, and clicking on the Account Activity link.

Southwest Texas Junior College cannot provide tax advice. Individuals should consult their tax professional to find out more about their eligibility for tax credits and/or the taxability of your scholarships. Information also may be obtained at the Internal Revenue Service website.

What is the Southwest Texas Junior College federal identification number for tax filing purposes?

Our federal identification number is 74-6002420.  It is included on all tax documents produced by the College (W-2, 1098-T, etc.).