- + What is the IRS Form 1098-T?
A college or university that received qualified tuition and related expenses on your behalf is required to file Form 1098-T with the Internal Revenue Service (IRS). The Taxpayer Relief Act of 1997
states that educational institutions, such as NKU, are required to file and furnish a Form 1098-T to students whom payments for qualified billed tuition and related expenses were received in the calendar year. The information being reported to the IRS verifies your enrollment with regard to certain eligibility criteria for the Hope Tax Credit, the Lifetime Learning Tax Credit and the Higher Education Tuition and Fees Deduction. However, the enrollment information by itself does not establish eligibility for either credit or deduction.
- + Can my parent(s), other persons who may claim me as a dependent, or my tax preparer receive my Form 1098-T directly instead?
As required by FERPA (Family Education Rights and Privacy Act), Northern Kentucky University or its personnel cannot provide this information directly to parents, other persons who may claim the student as a dependent, or tax preparers.
If you are claimed as a dependent on another person’s tax return (such as your parent’s return), please give your Form 1098-T and supplemental Information directly to that person.
If you need to obtain a Form 1098-T for your child, your child will need to give the University permission. The Form 1098-T can be provided only after the consent form is completed with the Registrar’s Office, LAC 301. For additional information on FERPA please visit the Registrar website
- + Why does Box 2 of my Form 1098-T have zero? Is this tax reporting method correct?
Eligible education institutions may choose to report payments received, or amounts billed, for qualified tuition and related expenses during a given year. NKU is now reporting tuition paid; therefore, amounts are reported in Box 1 of the Form 1098-T. Box 2 will be zero. This is to ensure a uniform tax reporting process since there are several methods for paying tuition at the University.
- + What amounts are included in Box 5, “Scholarships and Grants?”
This box contains the sum of all scholarships, federal grants, state grants, third party payments, and other free aid that Northern Kentucky University processed on the student’s account during the calendar year. Scholarships that pay for tuition and other tuition related expenses will be included in this amount.
All student loan disbursements are treated as cash payment, and are not included in this box, or reported anywhere on the 1098-T form.
Please NOTE ** You may receive additional scholarships that the University does not administer and/or process. These should also be taken into consideration when determining your eligibility for the tax credits.
- + Was this information reported to the Internal Revenue Service? Why?
The Form 1098-T is reported to the IRS. The primary purpose of the IRS Form 1098-T is to let you know that NKU has provided required information to the IRS to assist them in determining who may be eligible to claim the tuition and fee deduction or an education credit. There is no IRS requirement that you claim a tuition and fees deduction or an education related tax credit.
- + Where can I find more information regarding the tax credits and deduction for qualified higher education expenses?
- + Why is it that I don’t have any information on the Form 1098-T?
NKU is not required to file Form 1098-T or furnish a statement for:
- Non-credit programs without Continuing Education Units, even if the student is otherwise enrolled in a degree program.
- International (foreign) students who are not U.S. residents for tax purposes.
- Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships and grants [Federal Grants(PELL, ACG, SMART, SEOG) and State Grants (KEES, KY Byrd, KY CAP, KY TEACH, YOUNG, OHIO, INDIANA HEA, ECDS. etc.)].
- Students whose qualified tuition and related expenses are covered by a formal billing arrangement between an institution and the student’s employer or a government entity, such as the Department of Veterans’ Affairs or the Department of Defense.
- If payments were made either in a previous or future year for classes taken in the current calendar year, the expenses are not reflected in the current tax year. When reviewing your records please take into consideration actual payment dates.
- + Why do my records not match the tuition and fees paid reflected on my Form 1098-T?
When reviewing your records please take into consideration actual paid dates in order to reconcile your records to the amounts on the form. The 1098-T Form reflects paid tuition amounts made in the calendar year. Tuition paid in previous or future years are not included.
- + I made payments on my student loans. Will you provide information on the amount of interest paid?
This information will be provided by your loan servicer on Form 1098-E.
- + I am an international student; can I claim a credit? Do I need a Form 1098-T?
Generally international students cannot claim the tax education credit; although some students are eligible if they are deemed to be Resident Aliens for tax purposes under the substantial presence test. Please review the IRS documents or contact your individual tax consultant for assistance.
- + The name or social security number on the 1098-T is incorrect or has been changed, how can I get it corrected?
- + The address on the 1098-T is incorrect or has been changed, how can I get it corrected?
- + I do my own taxes and don’t have a tax preparer. How do I know if I qualify for a tax credit?
The tax rules regarding eligibility for, calculation of, and limitations on the tuition and fee deduction and education credits can be complex. Whether you may take advantage of these tax credits depends upon your individual facts and circumstances, information which is known only to you and may require the assistance of a tax professional.
To calculate the tax credit, you must file IRS Form 8863
along with your federal income tax return. IRS Publication 970
explains which tuition and fee expenses and which payments qualify for the tax credits. It is your responsibility to determine if you qualify for either tax credit.
The IRS Form information noted above is not intended to be legal or tax advice.
- + What if I have more questions?
Northern Kentucky University has provided the Form 1098-T in compliance with IRS guidelines. However, NKU is unable to answer any tax-related questions or provide any tax advice on this issue. All information and assistance that NKU can provide is contained on this page. The content of this page is not intended as legal or tax advice.
For tax specific questions, please contact the Internal Revenue Service (IRS) at 1-800-829-1040 or your personal tax advisor for further assistance.
PRINTING OF AN ELECTRONIC 1098T DOES NOT GUARANTEE ANY ELIGIBILITY FOR A TAX CREDIT.
NORTHERN KENTUCKY UNIVERSITY DOES NOT ASSIST IN TAX PREPARATION, ACT AS A TAX CONSULTANT FOR INDIVIDUALS OR ENTITIES, PROVIDE TAX ADVICE, AND CANNOT ANSWER YOUR TAX QUESTIONS. PLEASE CONSULT A TAX PROFESSIONAL, THE IRS, OR A FINANCIAL PLANNER WHO IS PROFICIENT WITH TAXATION WITH YOUR TAX QUESTIONS. EACH STUDENT AND/OR THEIR PARENTS MUST DETERMINE ELIGIBILITY FOR, CALCULATION OF, AND LIMITATION ON THE TUITION AND FEES DEDUCTION OR THE EDUCATION CREDITS (HOPE OR LIFETIME LEARNING CREDIT).
WHILE THE UNIVERISTY HAS MADE EVERY EFFORT TO USE THE MOST CURRENT AND ACCURATE DATA, TAX LAWS CHANGE FREQUENTLY, AND IT IS POSSIBLE THAT SOME OF THE INFORMATION MAY NO LONGER BE ACCURATE. THE UNIVERSITY DISCLAIMS ALL LIABILITY FROM THE MISTREATMENT OF INFORMATION AND MATERIALS CONTAINED IN THIS DOCUMENT. INFORMATION REGARDING IMMIGRATION, EMPLOYMENNT, AND TAX SUBSTANTIAL AUTHORITY ARE THE RESPONSIBILITY OF EACH INDIVIDUAL. PLEASE KEEP IN MIND THAT NO ONE FROM NORTHERN KENTUCKY UNIVERSITY WHILE IN THEIR OFFICIAL ROLE AT THE UNIVERISTY, CAN ACT AS A TAX CONSULTANT, GIVE PERSONAL, LEGAL, OR TAX ADVICE, OR REPRESENT AN INDIVIDUAL DEALING WITH THE INTERNAL REVEUE SERVICE (IRS). THUS, ANY ASSISTANCE THE ABOVE INFORMATION MAY PROVIDE IS GIVEN AS A COURTESY TO YOU, AND AS SUCH, SHOULD NOT BE CONSTRUED IN ANY WAY AS THE RENDERING OF LEGAL OR TAX ADVICE.