Claiming Your Education Tax Benefits

If your question regarding your 1098-T form is not answered here, please contact Student Accounts at [email protected] 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.

Answer:  The 1098-T Form reports information on what you paid for Qualified Tuition and Related Expenses (QTRE) at a college or university. All colleges and universities are required by the Internal Revenue Service to provide you with this information. It serves to alert students that they may be eligible for federal income tax education credits such as the Lifetime Learning Credit and the American Opportunity Credit (previously the Hope Scholarship Credit) as part of their federal income tax return. IRS Publication 970, “Tax Benefits for Higher Education,” as well as Chapter 35 of IRS Publication 17 (Your Federal Income Tax Guide for Individuals), provide additional information on these credits. 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.

The 1098-T contains a combination of student personal data, such as name, address, Social Security Number (SSN), and institutionally provided enrollment data, such as status as a graduate or undergraduate student, along with whether the student was enrolled at least half-time during the calendar year. The IRS will use this data to help determine who is eligible for the education tax credits.

1098-T’s will be issued for students meeting the IRS reporting criteria.

Answer: 

• Box 1: Used by NCMC starting in 2018; Reflects payments received during the calendar year not to exceed the total of QTRE charged.Box 2: IRS no longer uses (2011 to 2017 NCMC used to report by charges billed)
• Box 3: Reserved by IRS for future use
• Box 4: Adjustments made to a prior year’s billed qualified tuition and related expenses (if applicable)
• Box 5: Scholarships, Grants, or most Third Party payments (excluding payments from 529 plans)
• Box 6: Adjustments made to a prior year’s scholarships or grants (if applicable)
• Box 7: Box is checked if the amount in Box 1 includes payments for an academic period beginning January – March of the following tax year.
• Box 8: Box is checked if you are enrolled half time or greater
• Box 9: Box is checked if you were enrolled as a graduate student

Answer:  Qualified tuition and related expenses (QTRE) are those that a student must pay that are within the IRS guidelines. This is a chart of Qualified Expenses vs. Not-Qualified Expenses for your reference. Only payments that pay QTRE will show in Box 1.

Qualified Expenses

• Tuition
• Student Development & Facilities Use Fees
• Course Fees
• Technology Fee
• Program Fees

Non-Qualified Expenses

• Housing
• Meals
• Book Charges/Purchases
• ID replacements
• Student Health Fee

Answer:  The IRS no longer allows reporting of amounts billed, therefore this box is blank for ALL students.

Answer:  There are potentially many reasons for this discrepancy. First, the amount in Box 1 only represents amounts paid for qualified tuition and related expenses (QTRE) and does not include payments made for room and board, books, or health fees which, though important, are not considered mandatory education expenses for tax purposes. Secondly, Form 1098-T reports amounts that the student paid in a certain year, and the pay date does not necessarily correspond to the dates that the classes were attended. For example, tuition for the Spring semester is typically billed in the prior year so a student may have paid tuition for the Spring semester in November even though classes don’t start until January. The best and most accurate source of information about the amounts that you paid for qualified tuition and related expenses will be your student statements.

Answer: Yes, you may access your 1098-T by logging into myCOMPASS and following the instructions found on  How to Access Your Electronic 1098T.

Answer: You may print as many duplicate/replacement forms as you need by logging into myCOMPASS and following the instructions in the previous question. If you for any reason you are unable to access your 1098-T electronically, please email Student Accounts at [email protected] with your contact information. 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.

Answer: Contact Student Accounts at (660) 359-3948 ext. 1411 and your information will be corrected and a new 1098-T mailed to you within 48 hours of your request.

Answer: Eligible or qualified charges are any tuition charges plus the student development and facilities use fees, technology fees, nursing fees (if applicable), and course fees. All other charges to your student account, including room and board, are not considered eligible charges.

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).

Answer: Yes, please contact Student Accounts at [email protected] or (660) 359-3948 ext. 1411 and one can be sent to you. Please note, students must make all information requests.

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 preparer/consultant/advisor or the IRS directly at 1-800-829-1040. Alternatively, you may want to visit the following websites before calling the IRS: