Frequently Asked Questions
This information is not intended as legal or tax advice. Individuals should obtain IRS Publication 970, "Tax Benefits for Higher Education," at www.irs.gov, or contact a tax practitioner about income tax situations
Why am I receiving a form 1098-T?
IRS Form 1098-T, is entitled "Tuition Payment Statement," and contains information to assist the IRS and you in determining if you are eligible to claim educational related tax credits such as the HOPE Scholarship Tax Credit and Lifetime Learning Tax Credit.
The Tax Relief Act of 1997 states that educational institutions, such as Saint Joseph's University, are required to file informational returns with the IRS indicating a student's enrollment and payments received. The 1098-T form the student receives in the mail is the information that was sent to the IRS by Saint Joseph'sUniversity. The form is an informational return for your personal records and is not required to be submitted with your tax return.
How do I receive a copy of Form 1098-T?
Saint Joseph's University will mail out Form 1098-T by January 31st, 2005. Please allow 14 days before requesting a duplicate form to be mailed. Form 1098-T will be mailed to your billing address maintained by you on mySJU. If you do not have a billing address then it will be mailed to your permanent address. If you do not have a permanent address then it will be mailed to your local address. Changes to your address can be updated on mySJU. Logging onto mySJU web site and clicking on the 1098-T option will also allow you to view a detailed summary of the amounts displayed in Boxes 2, 3, 4 and 5.
Students who need to request a duplicate 1098-T copy can do so by emailing STUPAY.
What amounts are included in Box 2 “Amounts billed for qualified tuition and related expenses?
The university is required by the IRS to either fill in the payments received (Box 1) or the amounts billed for qualified tuition and related expenses (Box 2). SJU has chosen to fill in Box 2). This includes both in-state tuition and out of state tuition.
Qualified fees include: General Service fees, academic facilities fees, student union fees, special course fees, technology fees, off campus workshop fees, continuing education fees and admission application fees.
Unqualified fees include: University housing, meal plans, books, health insurance, late fees, parking permit charges, fines and finance charges.
Since I received Form 1098-T from the university, am I qualified for one of the educational tax credits?
Not necessarily. Determination of eligibility is the responsibility of the taxpayer. The university is required to file Form 1098-T with the IRS and to mail a copy to each student who was billed for qualified tuition and related expenses.
How do I determine if I am eligible for an educational tax credit?
You or your parents may be eligible for the educational tax credits on your tax return. The Taxpayer Relief Act of 1997 created two educational tax credits for students and families, the Hope Scholarship Tax Credit and the Lifetime Learning Tax Credit.
For a more detailed description you can read IRS Publication 970 which can be found on the IRS web site at www. irs.gov. The URL for Pub. 970 is http://www.irs.gov/pub/irs-pdf/p970.pdf
Can I claim both educational tax credits this year?
No, you can only elect one of the credits for any given tax year. If you elect to take the Lifetime Learning credit, you cannot also claim the Hope Scholarship credit. A parent with more than one child in an eligible educational institution may choose to take credits on a per-student, per year basis. For example, a parent can claim the Hope credit for one student and the Lifetime Learning credit for another student in the same year. IRS Form 8863 is used to calculate educational tax credits and can be found at http://www.irs.gov/pub/irs-pdf/f8863.pdf
Additional Information:
More detailed information is also available at the following web sites:
- http://www.irs.gov (place form number in search box)
- http://www.irs.gov/pub/irs-pdf/p970.pdf (to view IRS Publication 970)
- http://www.ed.gov/offices/OPE/PPI/HOPE/index.html
- http://www.nacubo.org