The information reported on form 1098-T helps students evaluate their eligibility for certain federal tax credit.
The Form 1098-T reports payments applied to qualified tuition and related expenses during the calendar year for which they receive academic credit. The information reported on Form 1098-T helps students evaluate their eligibility for the federal government’s American Opportunity tax credit and/or Lifetime Learning credit.
The IRS requires that institutions report the amount of tuition and other qualified charges paid by all sources rather than the amounts billed. Box 1 of the 1098-T form will show all payments (including scholarships, loans and other third-party payments) toward qualified charges from any source. Box 2 will be blank.
In accordance with the Internal Revenue Service requirements, MDC reports amounts paid during the calendar year for qualified tuition and related fees. The amounts reported on Form 1098-T may differ from the amounts relevant for claiming any tax benefits.
For information regarding filing your tax return, tax benefits for education and tax credits or deductions relating to your Form 1098-T please consult a tax professional. MDC cannot provide individual tax advice.
Other useful information, including IRS Publication 970 –Tax Benefits for Education, can be accessed at IRS website or by calling the IRS at 1-800-829-1040.
1098-T Frequently Asked Questions
Who is eligible to receive a 1098-T?
MDC will generate form for all qualified:
- U.S. citizens
- Permanent residents
- International students who have filed a taxpayer identification number on their student records
What charges qualify?
Qualified education expenses are:
- Scholarships and grants
- Certain related expenses required for enrollment or attendance at an eligible educational institution
The educational tax credits are based on the qualified education expenses you pay for yourself, your spouse or a dependent for whom you claim an exemption on your tax return.
Per IRS guidelines, the following expenses do not qualify, even if you are required to pay them to attend college:
- Room and board
- Insurance and student health fees
Learn more about qualified education expenses at the www.irs.gov website.
What information is reported?
On the 1098-T, USC reports the following student information to the IRS:
- Permanent address
- Taxpayer identification number
- Dollar amount of all payments toward qualified transactions
- Dollar amount of all financial aid credited to your account
- Adjustments to transactions reported in prior years
- Whether you were at least a half-time student during the calendar year
- Whether any amounts reported pertain to courses beginning in the first quarter of the coming year
MDC is required to report all qualified transactions in the calendar year they posted to your account, regardless of the academic period to which they belong. The university cannot modify the reporting method. Use your personal records and student account statements to determine the amounts you actually paid toward the charges reported on the 1098T.
Why am I being asked to provide my SSN/ITIN?
The IRS requires the university to request your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) annually if it is not recorded on your student account.
To provide this information, please fill out the Records Change form and submit to your campus Admissions and Registration Office along with your social security card and a picture ID to update your records.
How do I receive my 1098-T?
Before January 1 - Sign up for Electronic Delivery
If you have received a 1098-T from MDC in a prior year, log in to your Student Portal. Under “My Account” select “1098T” and select the “Grant Consent” to agree to receive your 1098T electronically.
End of January - Forms are Available
Forms are prepared in January. As soon as your form is ready, MDC will email you instructions for downloading it from their website if you have signed up for electronic delivery. If you have not signed up for electronic delivery, the form will be mailed to your mailing address no later than January 31.
The easiest way to download your current or prior year 1098-T is to log in to your Student Portal and Under “My Account” select “1098T” and select the respective tax year link. If you do not have access to your Student Portal or are having trouble logging in, visit our password and login assistance page for password and login assistance.
What if the SSN or ITIN on my form is missing or incorrect?
After your SSN or ITIN was updated by Admissions and Registration Office, you may contact Student Financial Services at 305-237-2141 to update the information on the form.
Why doesn’t the total in box 1 match what I paid to MDC?
There are several reasons box 1 may not match your records exactly. First, box 1 includes payments received from all sources, including financial aid and third-party sponsors. Second, it includes only payments toward qualified tuition and related expenses. Although you may have paid for housing, meal plans and other charges, those payments cannot be included in box 1. Finally, box 1 includes payments posted to your account only during the calendar year being reported. Payments made in 2017 for spring 2018 cannot be reported in 2018.
How is my payment plan reported on my 1098-T?
Your payment plan budget amount is not reported on your 1098-T. The actual payments made toward payment plans (excluding your application fees) are included in the box 1 amount to the extent that they paid for qualified charges.
Can you help me determine my eligibility for a credit?
No. We are not qualified tax professionals and cannot advise you on your individual circumstances. You should review IRS Publication 970 and consult with a qualified tax adviser if you need more assistance. All of your monthly billing statements and details about your online payments (including payment plan payments) are available on your Student Portal.
What if I believe data on my form is incorrect?
Please keep in mind that the 1098-T form includes only qualifying transactions from the calendar year reported. If you still believe your form is incorrect, please contact Student Financial Services at 305-237-2141.
What if there is no form for me?
Forms are not required for students whose scholarships, grants or third-party payments meet or exceed qualified charges.