Claiming Your Education Tax Benefits
Higher education costs may be eligible for tax benefits, and students are provided with the 1098-T form to assist in the preparation of annual tax returns. The 1098-T form is a “Tuition Payment Statement” that all higher educational institutions are required to provide to eligible students and to the IRS. Per IRS regulation, to be eligible to receive a 1098-T your billed tuition and fees for the calendar year must exceed your grants and scholarships for the calendar year.
1098-T forms are postmarked by January 31st each year to the permanent address on your student account. This is the same address at which you receive other NCMC mailings.
Frequently Asked Questions
If your question regarding your 1098-T form is not answered here, please contact Student Accounts at firstname.lastname@example.org and you should have a response within 48 hours of receipt.
Unfortunately, we are unable to provide instantaneous responses to 1098-T questions, so please ensure that you have your questions answered prior to your appointment with your tax preparer.
- What is the 1098-T Form?
Answer: The 1098-T is a form designed by the Internal Revenue Service (IRS) and used by colleges and universities to report tax-related information concerning educational expenses, pursuant to the Taxpayer Relief Act of 1997. NCMC is required to report information including the student’s name, address, taxpayer’s identification number (TIN), academic/enrollment status, and (since 2003) any amount of qualified tuition expenses or scholarships/grants (found in boxes 2 and 5, respectively). These forms are intended to be used by students as a guide while completing their individual federal tax returns, and should not be taken as any tax advice given by North Central Missouri College. It is a helpful step in applying for the federal income tax education credits; however, it does not contain all of the information necessary to apply, requiring additional information that must be researched and obtained by the student and their tax preparer.
- Is my 1098-T available on the NCMC website?
Answer: Yes, you may access your 1098-T by logging into myCOMPASS and following the instructions found here.
- How can I get a new/duplicate copy of my 1098-T?
Answer: If you did not receive the 1098-T form, or need a duplicate form, email Student Accounts at email@example.com with your contact information, and we can look up the information for you. Please note that 1098-T forms for prior years starting with 2010 are still available, if you need them for your records. If you need a 1098-T form for a year prior to 2010, please note that this information will take longer to obtain.
- My name or social security number are incorrect on my 1098-T. How can I have this corrected?
Answer: Contact Student Accounts at 660-359-3948 ext. 1508 and your information will be corrected and a new 1098-T mailed to you within 48 hours of your request.
- Why is box 1 blank on my 1098-T form?
Answer: Payments received for qualified tuition and related expenses will be blank for all NCMC students. Colleges and Universities are directed by the IRS to choose only one method of reporting, either by reporting the payments received for qualified tuition in Box 1 or by reporting the amounts billed for qualified tuition and related expenses in Box 2. NCMC has chosen the second method. This does not mean that your “payments received for qualified tuition and related expenses” are zero. To review all payments and other credits applied to your account during the calendar year, please review your SAIL account. Also, please note that NCMC bills tuition expenses for classes as of the date they were registered for. For example: If a student registered for classes for the Spring semester in November of the previous calendar year, those charges would be found on the previous year’s 1098-T, as that was the year the charges were billed.
- What does an amount in box 4 mean?
Answer: Box 4, “Adjustments made for a prior year” shows an amount if qualified tuition and related expenses that were reported on a 1098-T form for a prior year were subsequently adjusted or reduced in the current tax year.
- What does an amount in box 5 mean?
Answer: Box 5, “Scholarships or grants” shows the net amount of certain forms of educational assistance that was received or applied to your student account between January and December of the current tax year, regardless of the term for which the funds were originally intended.
- What does an amount in box 6 mean?
Answer: Box 6, “Adjustments to Scholarships or Grants for a Prior Year” shows an amount if scholarships or grants that were reported on a 1098-T for a prior year were subsequently adjusted or reduced in the current tax year.
- What charges are considered “qualified” or “eligible” for reporting in Box 2?
Answer: Eligible or qualified charges are any tuition charges plus the student development and facilities use fees, course fees, graduation fees, and application fees. All other charges to your student account, including room and board, are not considered eligible charges.
- Why are my Spring charges not showing up on my 1098-T?
Answer: Students automatically charge their accounts by registering for classes. If you registered for Spring classes during the regular registration period (typically November and December), you charged your account at that time, making those charges eligible to claim the previous years. These would have been reflected on your previous 1098-T. Similarly, if you have already registered for this coming Spring, these charges will be included on this year’s 1098-T form.
- I am a parent. Can I receive a copy of my child’s 1098-T form?
Answer: Students must make all information requests. The student is responsible for providing information to other parties in accordance with the Family Education Right to Privacy Act (FERPA).
- My tax preparer and I have questions regarding how to use the 1098-T form in preparing my tax return. Who can I contact for assistance with completing my tax return?
Answer: NCMC employees are not authorized to offer any personal tax advice. Please address all questions and concerns regarding personal tax matters to a tax consultant/advisor or the IRS directly at 1-800-829-1040.