Education Tax Credits
Students or parents may be eligible for tax credits based on eligible tuition payments made in the calendar year. For eligible students, Wesleyan issues an annual statement, form 1098T, which details all payments made during the calendar year. Paper copies of the form are mailed to the students' home addresses at the end of January and on-line copies are available in the Electronic Portfolio.
What is Form 1098T?
Colleges and universities are required by U.S. law each year to provide U.S. persons Form 1098T. This informational form assists families in calculating any education tax credit or deduction for which they may be eligible to claim based on amounts spent for education in a given calendar year. To learn more about education credits see IRS Publication 970, Tax Benefits for Education.
You are considered a U.S. person if you are:
- A U.S. citizen, or
- A lawful U.S. permanent resident, or
- A resident alien for tax purposes
Who receives Form 1098T?
Every 2015 enrolled Wesleyan student whose student account had financial transactions posted during the calendar year will be issued a paper form in late January. Non-enrolled students during 2015 will not be issued a form. With the exception of Graduate students, the paper copy is mailed to the student at his/her permanent address on file in the student electronic portfolio (this address is maintained by the student). An electronic copy is also available in the student electronic portfolio.
Do I need to provide Wesleyan with my Social Security Number (SSN)?
Yes. The Registrar's Office maintains your official University record. If you did not initially supply your SSN on your admission application you should update your University record. You will be sent a reminder email in the fall if your SSN is blank. Bring a completed substitute IRS form W-9 to the Registrar's Office. You will note on this form that the IRS may levy a $50 penalty if the SSN was requested, but is not provided.
Why is there not an amount in Box 1?
The IRS gives the option of either reporting amounts billed or total payments received. Wesleyan has elected to report total amounts billed for qualified tuition and related expenses during the calendar year in Box 2.
As a courtesy, Wesleyan supplies payment information at the bottom half of Form 1098T. This information is not reported to the IRS.
What is included in Box 2?
Box 2 reflects amounts billed for qualified tuition and related expenses during the calendar year. Wesleyan typically bills fall tuition and related expenses in July and spring tuition and related expenses in December. You will note that box 7 is checked when spring term charges are billed in December.
Per the IRS, related expenses do not include the Residential Comprehensive Fee (i.e. room and board). Related expenses (i.e. required fees) at Wesleyan are mainly: Student Activity Fee, Graduate Activity Fee and Matriculation Fee.
What is the timeframe for items listed in Box 5?
Items in Box 5 reflect items posted in the calendar year. For example, a student entering Fall 2015 would see only scholarship/grant posted for the fall 2015 semester in Box 5. The spring semester 2016 related grants/scholarships will appear on the 2016 1098T.
Tuition and related expenses for spring semester 2015 were billed in December 2014.
Are Parent PLUS loans reported on my Form 1098T?
All loan proceeds, including PLUS loans, are listed on the bottom half of the form. These items are not reported to the IRS.
Do I need to report my scholarships as taxable income?
Scholarships that pay for qualified tuition and related expenses are not taxable to the student. However, if any portion of your scholarships paid for nonqualified expenses (i.e. Residential Comprehensive Fee), then you may be responsible for reporting that portion as taxable income on your tax return. For further guidance, please see IRS Publication 970, Tax Benefits for Education.
Will I receive other tax forms from Wesleyan?
If you received a paycheck from Wesleyan during the calendar year you will receive Form W2, Wage and Tax Statement. Questions pertaining to a W2 form should be directed to the Payroll Office at (860) 685-2670 or firstname.lastname@example.org.
If you received a non-financial aid related prize from Wesleyan during the calendar year you will receive Form 1099 MISC. Questions pertaining to a 1099 should be directed to the Accounts Payable Office at (860) 685-2843 or email@example.com.
Where can I get more information?
Wesleyan University can only answer questions related to how Form 1098T was prepared. Members of Student Accounts and Financial Aid are available by phone at (860) 685-2800 or by email at TaxForm1098T@wesleyan.edu.
For more detailed information please visit the IRS website at www.irs.gov to obtain Publication 970 (Tax Benefits for Education)/Form 8863 (Education Credits) or consult with a professional tax practitioner.