1098-T’s will be posted to eStallion before January 31 each year. Specific Instructions for Form 1098-T (For Tax Years 2018 and Beyond)
Starting with the tax year 2018, the federal law has changed the reporting requirement for each university. The university must report payments received for qualified tuition and related expenses. We also report any scholarships/grants you received (free money not required to be paid back) on the 1098-T form (Box 5). We will now report out of pocket payments received (Box 1) on the 1098-T form and not charges billed (Box 2). This includes cash, check, credit card, and loan payments.
What is a 1098-T?
The 1098-T is a tax form that Abraham Baldwin Agricultural College provides to the student to file federal income taxes. It is used for the purpose of determining a student’s eligibility for education tax credits.
What is reported in Box 1 – Payments Received?
Due to a change to institutional reporting requirements under Federal Law, Abraham Baldwin Agricultural College has started reporting QTRE (Qualified Tuition and Related Expenses) in Box 1 of the 1098-T for tax year 2018 moving forward. Box 1 only represents amounts paid for qualified tuition and related expenses. It does not include payments made for room and board, insurance, health fees, parking permits, and books.
Why is Box 2 blank?
The IRS no longer allows institutions to report in Box 2 (Tax Deductible Amounts Billed).
What is reported in Box 4 – Adjustments made for a prior year?
Box 4 (Adjustments made for a prior year) reflects any refunds of tuition and fees billed in a previous tax year that you may have received in the current tax year. The amount in Box 4 may reduce any allowable education credit you claimed for a prior year.
What is reported in Box 5 – Scholarships and Grants?
This box contains the sum of all scholarships and grants ABAC administered and processed for the student’s account during the calendar year. Scholarships that pay for tuition (qualified scholarships) as well as for housing, books, and other expenses (non-qualified scholarships) will be included in this amount. Tuition waivers and payments received from third parties that are applied to student accounts for educational expenses are included in this box.
What is reported in Box 6 – Adjustments to scholarships or grants for a prior year?
Decreases or refunds of scholarship amounts related to scholarships reported in a previous year are included in this box. This amount is reported as a positive number per IRS requirements. However, it is actually a decrease in the amount that was reported on a prior year 1098-T.
What is reported in Box 7 – Payments for next year?
This box will be checked if the amount reported in Box 1 includes Payments Received and posted to a student account in the current year that pays for a semester beginning in the next calendar year. For example, payments received in December 2017 for the Spring 2018 Academic term will be reported on a 2018 1098-T. Box 7 will be checked to indicate that this is the case.
What is reported in Box 8 – Student is at least half time?
A check in this box indicates that you are or have been enrolled at ABAC at least half-time for at least one semester during the calendar year.
If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the American Opportunity credit. You do not have to meet the workload requirement to qualify for the Lifetime Learning credit.
