The IRS Form 1098-T is a statement colleges and universities are required to issue to certain students providing the qualified tuition and related expenses (QTRE) paid.
In years prior to 2018, IRS Form 1098-T (Tuition Statement), included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) the College billed to the student for the calendar year. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, the College will report in Box 1 the amount of QTRE paid during the calendar year. This means you will no longer see an amount in Box 2, but rather in Box 1. Payments from any source (except scholarships that cannot be used to cover QTRE) are reported in Box 1, up to the amount of QTRE billed in the calendar year.
Form 1098-T also reflects the amount of scholarships and grants awarded to the student for the same tax year. The College is required to report this information annually on each student who meets the IRS’ reporting requirements. If the scholarships and grants awarded in a calendar year are in excess of QTRE, a Form 1098-T will not be issued.
Depending on the student's income (or family income, if the student is a dependent), whether the student is considered a full-time or part-time student, and the amount of qualified educational expenses for the year, the student may be eligible for a federal education tax credit. You can find detailed information about claiming education tax credits in IRS Publication 970. The amounts reported on the Form 1098-T may assist in completing the IRS Form 8863, the form used in calculating the education tax credits that a taxpayer may claim as part of their tax return.
Franklin & Marshall College is unable to provide students or their families with individual tax advice, but if you have questions, please seek the counsel of a tax preparer or adviser.
The 1098-T forms are mailed to the student's permanent home address prior to January 31 each year (to students who meet the IRS’ reporting requirements). The form is also available to students online under the myDiplomat portal by clicking on the My Info tab from the Navigation menu. The icon is called 1098-T Tuition Statement Tax Form. Enter the tax year as 20xx and click the Submit button.
Request for Student's Social Security Number (SSN)
You may receive a notice from F&M through the mail asking for the student’s SSN. This request is for 1098-T reporting purposes. All 1098-T forms require a taxpayer identification number (TIN) or a social security number (SSN). If we do not have an SSN on file for a student, a W-9S form will be sent to the student’s permanent resident address requesting their TIN or SSN for this purpose. Students who do not provide their TIN/SSN to institutions that are required to file information returns on their behalf may be subject to penalties by the IRS. The College must file a Form 1098-T for the student, even if the student fails or refuses to provide a TIN/SSN.
Note to International Students & 1098-T Reporting
In general, reporting under Form 1098-T is not required for non-resident alien individuals, unless they ask the institution to report such information. Since the College may not have enough information to determine residency of most international students, a Form 1098-T will be issued to all eligible internationally-designated students.