Why isn't there an amount in box 1?
The IRS instructs institutions to report either payments received (Box 1) or amounts billed for qualified tuition and related expenses (Box 2) on the 1098-T. Once an institution has selected one of these options, they cannot change reporting methods between calendar years without IRS permission. NYIT reports qualified tuition and related expenses that were billed during the tax year (Box 2); therefore, Box 1 - Payments Received for Qualified Tuition and Related Expenses will be blank.
For purposes of box 2, what educational expenses are considered as qualified tuition and related expenses?
Qualified tuition and related expenses refer to tuition and required fees, such as segregated fees and lab fees, that a student must pay to be enrolled at or attend an eligible education institution. Tuition waivers and remissions are considered reductions to qualified tuition and expenses. Qualified expenses do not
Do the "amounts billed" figures in box 2 of my 1098T equal the "qualified expenses" I can claim on my IRS Form 8863 as I file my taxes?
Amounts paid for any course or education involving sports, games or hobbies unless the course or other education is required as part of the student's degree program or is taken to acquire or improve job skills.
Charges and fees for room, board, insurance, transportation, personal, living and other family expenses.
The cost of books and equipment are generally not qualified expenses because eligible educational institutions usually do not require that the cost of the books or equipment be paid to the institution as a condition of the student's enrollment or attendance at the institution. However, some campuses may have a mandatory textbook fee or rental program which may be included as a qualified related expense.
Not necessarily. NYIT is required to provide the "amounts billed" and "scholarship or grant" figures to help you determine the amount of qualified expenses you can claim on your IRS Form 8863. Per Internal Revenue Code Section 25A, taxpayers may claim an education tax credit only with respect to qualified tuition and related expenses paid
(not billed) during the calendar year. You will need to review your payment records to determine the actual qualified expenses paid.
Remember that qualified amounts paid by student loans may count as payments eligible for these purposes. Scholarships and grants received may reduce your eligible payment amounts. See IRS Publication 970 for information to determine your qualified expenses paid amount.
What amounts appear in box 4 - adjustments made for a prior year?
This shows the amount of any tuition and fees reductions in the current calendar year for charges that were billed in a previous calendar year.
How did NYIT figure out what amounts to include in box 5 - scholarships or grants?
The figure in Box 5 includes scholarships, grants and, if applicable, payments made by a third party under formal billing arrangements (i.e. outside scholarships, employer provided educational assistance (regardless of taxability), military, etc.) which have been administered by NYIT. If you received other forms of outside scholarships and grants not administered by NYIT, it is your responsibility to adjust the figure accordingly. Third party payments do not include payments made by your parent or other individuals.
If you are being taxed on employer-provided educational assistance, why should this be considered a scholarship or grant?
NYIT does not determine whether your education benefits are being taxed by your employer. As such, scholarships and grants are increased by 100% of any employer-provided payments under a formal billing arrangement and it is up to you to adjust your qualified tuition and related expenses accordingly based on the taxability of your employer benefits.
What amounts appear in box 6 - adjustments to scholarships or grants for a prior year?
This shows the amount of any scholarship, grant, and if applicable, third party reductions in the current calendar year for aid that was credited in a previous calendar year.
Why is there no check mark in box 8 - at least part-time?
This box will not be checked if you were not enrolled at a half-time status during an academic period which is either enrolled or billed during the calendar year. NYIT checks this box if you were half-time or more for at least one term beginning during the year. This information is important in determining eligibility for the Hope Credit.
What is the purpose of box 9 – graduate student?
Box 9 will be checked if you were enrolled as a graduate student for at least one academic period during the calendar year. If box 9 is checked, it alerts the IRS to the fact that the Hope Scholarship Credit is not allowable for the student's qualified expenses because the student is beyond the first two years of post-secondary education and that the Lifetime Learning Credit may be allowable.