Tax Benefits for Education/ Form 1098-T, Tuition Statement
You can retrieve a copy of your 2022 1098-T by visiting Heartland ECSI
- A majority of the information on this page has been taken from various IRS sources which are referenced later on this page.
- Eligible educational institutions must file a Form 1098-T, Tuition Statement for each student they enroll and for whom a reportable transaction is made.
- There are several exceptions in which eligible educational institutions do not have to file a Form 1098-T for a student they enroll and for whom a reportable transaction is made.
- The most common exception involves students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships.
- You, or the person who can claim you as a dependent, may be able to claim an education credit on Form 1040 or Form 1040SR.
- An education credit may be claimed if a student doesn’t receive a Form 1098-T because the student's educational institution isn’t required to furnish a Form 1098-T to the student under existing rules; see the exception listed above.
- You are welcome to request a 1098-T by emailing email@example.com if one wasn’t created for you because of the exception listed above.
- Please note that in some situations a tax liability can exist where a student’s scholarships exceed their qualified tuition and related expenses.
Amounts reported in Box 1 on Form 1098-T
- Box 1 shows the total payments received by an eligible educational institution in 2022 from any source for qualified tuition and related expenses less any reimbursements or refunds made during 2022 that relate to those payments received during 2022.
- Any source includes, but is not limited to scholarships, grants, 3rd party payments, loans and out-of-pocket payments.
- Qualified tuition and related expenses are tuition, fees, and course materials required for a student to be enrolled at or attend an eligible educational institution.
- Charges and fees for room, board, insurance, medical expenses, transportation, and similar personal, living, or family expenses are not considered qualified tuition and related expenses.
- The amount in Box 1, might be different than the amount you actually paid and are deemed to have paid.
- One reason for this is the difference between an academic year, which starts in the summer and ends the following spring, and a tax year which starts on January 1st and ends on December 31st.
- A second reason is because the IRS does not define how payments should be applied to charges for 1098-T purposes.
Most eligible educational institutions apply payments toward charges in a certain manner to comply with federal financial aid regulations and this manner often differs from how tax payers would like to see payments applied toward charges for educational credit purposes.
Most importantly, IRS Publication 970 states that when figuring an education credit use only the amounts you paid or are deemed to have paid in 2022 for qualified education expenses.
- Most tax professionals realize that the amount in Box 1 most often differs from the amounts you paid or are deemed to have paid and as such routinely request a copy of all of the student’s financial transactions, so that they can accurately calculate the amounts you paid or are deemed to have paid.
- A copy of the student’s financial transactions may be sought on your Nelnet account or by emailing firstname.lastname@example.org (we will respond via email, unless instruction to do so otherwise).
As per IRS instructions, do not contact Clarkson University (or ECSI) to see if you qualify for an educational credit and/or for help in calculating an education credit. Information pertaining to education credits can be found in IRS Pub 970 or at IRS.gov or by calling the taxpayer assistance line at 1-800-829-1040 or by consulting a tax professional of your choosing.
- Clarkson personnel (and ECSI personnel) are not tax professionals and could be held liable for any tax advice given, therefore we strongly recommend that you follow the IRS’ instructions and contact the IRS or a tax professional of your choosing if you have questions pertaining educational credits.
Important 1098-T Electronic Consent Information
- Clarkson University, in conjunction with ECSI, is offering you the opportunity to receive your Form 1098-T, Tuition Statement electronically. If you would like to receive your Form 1098-T, Tuition Statement electronically, please give your consent by following the link provided below and following the step-by-step instructions: