The 1098-T form reports payments applied to qualified tuition charges and related expenses during the calendar year for which students receive academic credit. The information reported on the 1098-T form helps students evaluate their eligibility for the federal government’s American Opportunity tax credit and/or Lifetime Learning credit. The IRS requires that institutions report the amount of tuition and other qualified charges paid by all sources rather than the amounts billed. Box 1 of the 1098-T form will show all payments (including scholarships, loans and other third-party payments) toward qualified charges from any source. Box 2 will be blank.
In accordance with the Internal Revenue Service requirements, MDC reports amounts paid during the calendar year for qualified tuition charges and related fees. In addition, the amounts reported on the 1098-T form may differ from the amounts relevant for claiming any tax benefits. Other useful information, including IRS Publication 970 – Tax Benefits for Education, can be accessed at IRS website or by calling the IRS at 1-800-829-1040. For an example of the form and student instructions, click on this sample 1098-T Tax Form.
For information regarding filing your tax return, tax benefits for education, and tax credits or deductions relating to your Form 1098-T please consult a tax professional. MDC cannot provide individual tax advice.
1098-T Frequently Asked Questions
MDC will generate form for all qualified:
- U.S. citizens
- Permanent residents
- International students who have filed a taxpayer identification number on their student records
Qualified education expenses are:
- Tuition
- Scholarships and grants
- Certain related expenses required for enrollment or attendance at an eligible educational institution
The educational tax credits are based on the qualified education expenses you pay for yourself, your spouse or a dependent for whom you claim an exemption on your tax return.
- Digital Material Fees (Digital Material will not be included in the 1098-T calculation)
Per IRS guidelines, the following expenses do not qualify, even if you are required to pay them to attend college:
- Room and board
- Insurance and student health fees
- Transportation
Learn more about qualified education expenses at the www.irs.gov website.
On the 1098-T, USC reports the following student information to the IRS:
- Name
- Permanent address
- Taxpayer identification number
- Dollar amount of all payments toward qualified transactions
- Dollar amount of all financial aid credited to your account
- Adjustments to transactions reported in prior years
- Whether you were at least a half-time student during the calendar year
- Whether any amounts reported pertain to courses beginning in the first quarter of the coming year
MDC is required to report all qualified transactions in the calendar year they posted to your account, regardless of the academic period to which they belong. The university cannot modify the reporting method. Use your personal records and student account statements to determine the amounts you actually paid toward the charges reported on the 1098T.
The IRS requires the university to request your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) annually if it is not recorded on your student account.
To provide this information, please fill out the Records Change form and submit to your campus Admissions and Registration Office along with your social security card and a picture ID to update your records.
Before January 1 - Sign up for Electronic Delivery
If you have received a 1098-T from MDC in a prior year, log in to your Student Portal. Under “My Account” select “1098T” and select the “Grant Consent” to agree to receive your 1098T electronically.
End of January - Forms are Available
Forms are prepared in January. As soon as your form is ready, MDC will email you instructions for downloading it if you’ve signed up for electronic delivery. If not, the form will be mailed to your address no later than January 31.
The easiest way to download your 1098-T is to log in to your Student Portal, click “1098T,” and select the tax year. If you can’t access the portal, visit our password and login assistance page.
After your SSN or ITIN is updated with the Admissions and Registration Office, contact Student Financial Services at 305-237-2141 to update the form info.
There are several reasons box 1 may not match your records exactly. First, box 1 includes payments received from all sources, including financial aid and third-party sponsors. Second, it includes only payments toward qualified tuition and related expenses. Although you may have paid for housing, meal plans and other charges, those payments cannot be included in box 1. Finally, box 1 includes payments posted to your account only during the calendar year being reported. Payments made in 2017 for spring 2018 cannot be reported in 2018.
Your payment plan budget amount is not reported on your 1098-T. The actual payments made toward payment plans (excluding your application fees) are included in the box 1 amount to the extent that they paid for qualified charges.
No. MDC staff are not tax professionals. Please consult a qualified tax advisor and refer to IRS Publication 970. You may also access your billing and payment history in your Student Portal.
If your 1098-T seems incorrect and you’ve verified the timing and eligibility of your transactions, contact Student Financial Services at 305-237-2141.
Forms are not required for students whose scholarships, grants or third-party payments meet or exceed qualified charges.