Education Tax Credits

1098-T Frequently Asked Questions

Hope Scholarship & Lifetime Learning Tax Credits
and Student Loan Interest Deduction

In 1997, the Taxpayer Relief Act established two education tax credits and a deduction for student loan interest. The following is general information only and should not be taken as tax advice; please consult the IRS or a tax professional for further guidance. The University cannot provide assistance regarding your eligibility or the calculation of the credit. The following Web sites have additional information that may be useful.

IRS Publication 970 - Tax Benefits for Higher Education*
IRS Tax Information for Students
IRS Form 8863 to claim education tax credits*

Frequently Asked Questions

1. Why did I receive a 1098-T tax form? Am I eligible to claim the tax credit?
2. When and where will the 1098-T be mailed?
3. Why don't I have a 1098-T form?
4. Does the 1098-T form have to be attached to my tax return?
5. Why don't the tuition and fee payments reflected on my 1098-T form match my records?
6. Why are the figures on my statement so high?
7. What are qualified tuition and related expenses?
8. I took University extension classroom and/or online courses. Why do the amounts on the 1098-T not match my figures?
   

Why did I receive a 1098-T tax form? Am I eligible to claim a tax credit?

Under section 6050S of the Internal Revenue code, higher education institutions are required to file information returns with the IRS and furnish statements to taxpayers.

Whether you may take advantage of these tax credits depends upon your individual facts and circumstances. The University cannot provide tax advice, so you may want to consult the IRS or a tax professional to find out more about the credits and your eligibility. Please see the resource links above for additional information.

When and where will the 1098-T be mailed?

Forms will be mailed to the student's permanent address during the last week in January. The permanent address may be verified in UT Direct or at the Registrar's Web site. The 1098-T is also available online, to view or print.

Why don't I have a 1098-T form?

•  Payment must have been made in 2007 to be included on the 1098-T form. Payments made in 2006 for the spring semester 2007 are not included. If this was your only payment, a 1098-T form will not be issued for you.

•  You may not have a valid Taxpayer Identification Number (TIN) on file. In most cases, the TIN is your social security number. Please complete the IRS form W-9S* and return it to Student Accounts Receivable, Attn: 1098-T, PO Box 7398, Austin, Texas, 78713. A 1098-T form will be issued and mailed to your permanent address. It will also be available online. Your social security number will be used for tax reporting purposes only and your student identifier will remain your UT EID.

•  Educational institutions are not required to report tuition information for non-resident aliens. If you are a non-resident alien and would like a 1098-T form, and therefore have your information reported to IRS, please contact Student Accounts Receivable at 512-475-7777, option 1. You may need to provide your Taxpayer Identification number (see above).

Does the 1098-T form have to be attached to my tax return?

No. There is no requirement to attach Form 1098-T to your tax return.

Why don't the tuition and fee payments reflected on my 1098-T form match my records?

When reviewing your records please take into consideration actual payment dates in order to reconcile to the amounts on the form. The 1098-T form reflects payments and refunds made in calendar year 2007. Payments made in 2006 for Spring '07 classes and payments made in 2008 for Spring '08 classes are not included.

Certain fees are not considered qualified tuition and related expenses. These fees have been deducted from the payment amount. Please consult IRS Publication 970 for more information.

Why is the payment amount on my 1098-T form so high?

The 1098-T form reflects total tuition and fee payments, not just items paid by you individually. Therefore, the statement may include amounts paid by financial aid, tuition waivers, exemptions, etc.

What are qualified tuition and related expenses?

Please consult IRS Publication 970 for information on qualified tuition and related expenses, and other items reported on the 1098-T form. In general, payments for qualified tuition and related expenses are those required in order to be enrolled at or attend the University. Amounts paid for any course or other education involving sports, games or hobbies are not eligible unless the course is part of the student's degree program. Charges and fees associated with room, board, student activities, athletics, insurance, books, equipment, transportation and similar personal living or family expenses are not qualified expenses.

I took University Extension classroom and/or online courses. Why do the amounts on the 1098-T not match my figures?

This information is supplied by the program office. If you would like more information regarding the amount for University Extension classroom or online courses, please call 512-471-2906.

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