What is a 1098-T Form?
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. Eligible educational institutions are required to submit the student’s name, address, and taxpayer’s identification number (TIN), enrollment and academic status. Beginning with 2003, educational institutions must also report amounts to the IRS pertaining to qualified tuition and related expenses, as well as scholarships and/or grants, taxable or not. A 1098-T form must also be provided to each applicable student. This form is informational only. It serves to alert students that they may be eligible for federal income tax education deductions or credits. It should not be considered as tax opinion or advice. While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax deduction or credit. There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.
When can I Expect to Receive my 1098-T Form?
1098-T forms are available only “electronically” and will be available for viewing/downloading in CASHNet by January 31st. I understand I can request a paper copy by emailing the Student Accounts Office.
How is Box 1 Being Determined?
Box 1 reports payments received from all sources for qualified tuition and related expenses for the calendar year. Qualified expenses do not include charges for housing, meal plans, transportation, and personal expenses. Payments received are first applied to qualified tuition and related expenses. Once qualified tuition and related expenses are paid for, any remaining balance/payments are applied to room, board, and other fees. For example, if a payment of $5,000 was received in December 2021 for Spring 2022 tuition and fees, the $5,000 will be applied in full towards qualified tuition and related expenses (QTRE) first and thus reported in the 2021 1098T.
Why did I Receive a 1098-T and what am I Supposed to do with it?
In January of each year, Pomona College sends an IRS Form 1098-T to all students who had qualified tuition and other related educational expenses billed to them during the previous calendar year. This form is informational only and should not be considered as tax opinion or advice. It serves to alert students that they may be eligible for federal income tax education deductions or credits. Receipt of Form 1098-T does not indicate eligibility for a deduction or tax credit. To determine the amount of qualified tuition and fees paid, and the amount of scholarships and grants received, a taxpayer should use their own financial records. NOTE: It is up to each taxpayer to determine eligibility for the credits and how to calculate them.
How can I Obtain a Copy of my 1098-T Form?
To obtain a copy of your 1098-T form, log into your CASHNet Account.
Why Don’t the Numbers on the 1098-T Form Equal the Amounts I Paid to Pomona College During the Year?
The amount in Box 1 only has amounts paid for qualified tuition and related expenses (QTRE) and does not include payments received for housing, meal plans, library fines, parking citations/permits, insurance, or health services fees as these fees are not considered related education expenses. Furthermore, 1098-T forms report amounts that the student paid in a particular calendar year, and the pay date does not necessarily correspond to the dates that the classes were attended. For example, tuition for Spring semester is billed in December so a student may have paid tuition for Spring semester in 2021 despite the fact that classes did not start until 2022. The best and most accurate source of information about the amounts that you paid for qualified tuition and related expenses will be your e-Bills located in CASHNet.
I Graduated in May of the Current Year. Do I Have a 1098-T Form for the Current Year?
Some May graduates will not be issued a Form 1098-T for the current year because there is a possibility that payments for QTRE were made on or before December 31 of the previous year. The current Spring semester tuition charges are generally billed and posted in December of the previous year and, therefore, would have been included on the previous year’s Form 1098-T, in Box 1. If a student paid for the current Spring semester and any other outstanding QTRE charges in the previous year, then the student would not receive a 1098-T Form for the current year.
I did not Receive a 1098-T Form, Why?
Pomona was not required to send you a form.
Did you Send a Copy of this Form to the IRS?
Yes. Section 6050S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires institutions to file information returns to assist taxpayers and the Internal Revenue Service in determining eligibility for the Hope and Lifetime Learning education tax credits. Forms are mailed at the end of January of each year for the previous tax year.
What educational expenses are considered as qualified tuition and related expenses?
Qualified tuition and related expenses for calculating tax credits/deductions:
- Tuition fees required for enrollment or attendance at an eligible educational institution (any accredited public, nonprofit, or proprietary postsecondary institution—including Pomona College)
- Books, supplies, and equipment needed for a course of study
For more information about qualified educational expenses please go to: IRS Publication 970.
What is the American Opportunity Credit?
For more information, please visit the IRS website.
My Address Listed on the 1098-T has Changed. Will this Affect me?
No. The address shown on Form 1098-T is irrelevant for IRS income tax filing purposes. The single most important information on the form is your Social Security Number.
How do I get a Reprint of my 1098-T Form?
1098-T forms can be printed/downloaded from CASHNet, under “Tax Forms”.
How can I get an Itemized Listing of my Financial Activity that is on my 1098-T Form?
Calendar year account statements are available by request.
What if I still have Questions?
If you have additional questions/concerns, you can reach us by Email: firstname.lastname@example.org or Phone: 909-621-8214
Note: Please be advised that Pomona College does not provide legal, tax, or accounting advice to students and we are not responsible for any use you make of the information in this publication. Receipt of Form 1098-T does not indicate eligibility for the tax credit.