**NCMC CANNOT give any tax advice, instruction, or suggestions of any kind.**
Please refer inquiries to your financial advisor or to the IRS website for further clarification.
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. Please note: The 1098T is an informational return that reports tuition expenses you paid for college tuition that might entitle you to an income tax credit or deduction.
2022 1098T’s were mailed via USPS on January 24th.
Forms are now available on myCOMPASS for download!
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.
What is the 1098-T form?
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.
WHICH BOXES SHOULD BE FILLED IN AND WHAT DO THEY MEAN?
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
WHAT PAYMENTS ARE INCLUDED IN BOX 1? WHAT IS QTRE “QUALIFIED TUITION AND RELATED EXPENSES?”?
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
WHY ISN’T THERE AN AMOUNT IN BOX 2?
Answer: The IRS no longer allows reporting of amounts billed, therefore this box is blank for ALL students.
WHY DON’T THE NUMBERS ON MY 1098T EQUAL THE AMOUNTS I PAID TO NCMC DURING THE YEAR?
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.
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 on How to Access Your Electronic 1098T .
How can I get a new/duplicate copy of my 1098-T?
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.
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. 1501 and your information will be corrected and a new 1098-T mailed to you within 48 hours of your request.
Why is box 2 blank on my 1098-T form?
Answer: In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) we billed to your student account for the calendar (tax) year. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, we will report in Box 1 the amount of QTRE you paid during the year.
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. Please note, due to the change in reporting method for tax year 2018, there will be no amounts reported in box 4.
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. Please note, due to the change in reporting method for tax year 2018, there will be no amounts reported in box 6.
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, 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.
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).
I would like an itemized statement to go along with my 1098-T form. Am I able to request one?
Answer: Yes, please contact Student Accounts at [email protected] or (660) 357-6411 and one can be sent to you. Please note, students must make all information requests.
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 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: