Tax Information


What is a 1098-T?

The 1098-T form is used by eligible educational institutions to report information about their students to the IRS as required by the Taxpayer Relief Act of 1997.

In previous years, 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) that were billed to a student’s account for the calendar (tax) year. Due to a change in federal law, beginning with tax year 2018, we will report in Box 1 the amount of QTRE paid by a student during the year.

This means you will no longer see any amounts in Box 2 (amounts billed for qualified tuition and related expenses) on a 1098-T form. You will, however, see an amount in Box 1 (payments received for qualified tuition and related expenses).

Depending on a student’s income (or a family’s income, if they are a dependent), whether they were considered full or half-time enrolled, and the amount of their qualified educational expenses for the year, they may be eligible for a federal education tax credit. Your tax accountant can provide you with more detailed information about claiming an education tax credit.

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

If you have questions about how to compute your education tax credit, you should consult your tax professional or refer to the IRS. BHSON is not able to provide tax advice. Please use the following resources for assistance with tax forms and credits.

IRS Telephone Assistance Hotline: 1-800-829-1040