1098-T Tax Reporting Information for Duke University Students
What is IRS Form 1098-T?
The 1098-T is an informational form issued to students to help determine eligibility for certain educational tax credits. These forms are prepared in compliance with reporting guidelines established by the IRS. Information included on Form 1098-T is reported to the IRS. Included in Form 1098-T are the following financial transactions posted to student accounts in calendar year 2018:
Box 1 – Payments Received
The total in Box 1 includes all payments received by Duke in calendar year 2018 that pay for qualified tuition and related expenses (“QTRE” – see below), as defined by the IRS. QTRE includes payments from students and families, advance deposits, loans, scholarships, grants, and third party sponsor payments. Only the portion of the payments applied to QTRE is reported in Box 1.
Box 2 – Amounts Billed
Effective with 2018 reporting, and to comply with the Consolidated Appropriations Act of 2015, Duke has started reporting Payments Received in Box 1. With this change, Box 2 will be left blank. In prior years, Duke reported “Amounts Billed” in Box 2.
Box 4 – Adjustments to a Prior Year
Box 4 reports adjustments including changes made to items originally reported in Box 1 or Box 2 in a prior calendar year. In 2018, during the transition to the “Payments Received” method, Box 4 will include amounts reported in Box 2 (“Amounts Billed”) in prior calendar years. Previously, Duke used the “Amounts Billed” rather than the “Payments Received” methodology. The “Amounts Billed” methodology is no longer permitted by the IRS.
Box 5 – Scholarships or Grants
Box 5 includes scholarships, grants, and payments from a corporate or government sponsor. Per IRS regulations, Box 5 includes any payments made by someone other than the student or family.
Which items are considered QTRE?
The IRS defines QTRE as items directly related to a student’s education. QTRE includes tuition and enrollment fees.
The IRS does not consider the following items to be related directly to the student’s education: room/housing, board/dining, health fees, recreation fees, and fees covering travel and related expenses.
What are the IRS’ reporting criteria for receiving a Form 1098-T for 2018?
The student must have taken classes for academic credit in any term that began during the 2018 calendar year. In addition, the student’s account must have had a payment or financial aid award posted in calendar year 2018 that was applied to qualified tuition and related expenses.
If the student received financial aid in the form of scholarships, grants, or third party payments that exceeded the amount of payments for qualified tuition and related expenses posted in calendar year 2018, the student will not receive Form 1098-T.
Last year my 1098-T left Box 1 blank and listed “Amounts Billed” Box 2. Why is 2018 different?
Effective with the 2018 reporting and to comply with the Consolidated Appropriations Act of 2015, Duke changed reporting methods to Box 1 “Payments Received”. Previously, Duke used the “Amounts Billed” rather than the “Payments Received” methodology. The “Amounts Billed” methodology is no longer permitted by the IRS.
What am I supposed to do with the 1098-T I received?
Keep it for your personal records and share the 1098-T with your tax preparer for assistance in determining your eligibility for certain tax credits.
What resources are available to me to determine my eligibility for certain tax credits?
There are many details surrounding benefits of The Taxpayer Relief Act (TRA97) of 1997. Please contact a tax professional to determine if you qualify for these benefits. Duke University cannot provide tax advice.
Contact the IRS' office of Public Liaison at 1-800-829-1040 or visit one of the following websites to learn more about these tax benefits.