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).

When does Southwestern College send out form 1098t?

In January of each year, Southwestern College prepares form 1098T for all eligible students. This form is used by students and parents to claim the American Opportunity, Hope, and Lifetime Learning credits when filing income tax returns. To waive the paper copy and receive Form 1098T electronically, you must enroll through ePayment.

What does it mean when tuition is reduced on a 1098?

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 December 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.

Is the Mountaineer Emergency Fund included in the 1098t?

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. Other forms of emergency aid, such as The Mountaineer Emergency Fund, are required to be included on IRS Form 1098T.

What does box 5 on a 1098-T mean?

If the amount in Box 5 (your scholarships) is GREATER THAN the amount in Box 1 for Tuition Paid (or Box 2 for tuition billed- whichever is filled in on your 1098-T ), this means that you had an excess amount of scholarship, and this amount is taxable income.

How are scholarships reported on a tax return?

If the scholarships/grants exceed the qualified education expenses, then the student will report the 1098-T and all other educational expenses and scholarships/grants on the student’s tax return. The student will pay taxes on the amount of scholarships/grants that are not used for qualified education expenses.

What’s the difference between qtre and 1098-T?

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 assistance when claiming an education tax credit.

When do you no longer need to check box 3 on 1098-T?

In 2020, with only one method available for the current and prior years, the check box for changing methods is no longer needed, so Box 3 is no longer used. Box 4 of the form shows any adjustments the school has made to qualified expenses reported on a previous year’s 1098-T.