Explanation of Your IRS Form 1098-T Tuition Statement

  • The IRS Form 1098-T is an informational form filed with the Internal Revenue Service.
  • The IRS Form 1098-T that you receive reports amounts billed to you for qualified tuition and related expenses, as well as other related information.
  • All information and assistance that Cox College can provide to you is contained in this notice.

Box 1: Payments Received for Qualified Tuition and Related Expenses

The IRS gives the option of reporting information in either Box 1 or Box 2 of form 1098-T. Cox College has opted to report in Box 2.

Box 2: Amounts Billed for Qualified Tuition and Related Expenses

Box 2 will reflect qualified tuition and related expenses billed during the 2013 calendar year (January 1, 2013 through December 31, 2013). Please note, if you registered for the Spring 2014 semester in October, November, or December of 2013, these amounts are considered unofficial billing charges until authorized at the start of the Spring 2014 semester. Therefore, these are authorized and posted as official to your student account in January 2014, and will not be included on your 2013 1098-T form. For purposes of the Form 1098-T provided by Cox College, the following categories of charges are included or not included as qualified tuition and related expenses:

Qualified Tuition and Related Expenses

Included Not Included
  • Tuition
  • Application Fee
  • Educational Fees
  • Course Related Books & Equipment
  • Lab Fees
  • Late Registration Fee
  • SGA Fee
  • Pre-entrance Testing Fees
  • Acceptance Fee
  • Technology Fee
  • ATI/HESI Testing Fee

Box 5: Scholarships or Grants

Box 5 of Form 1098-T reports the total of scholarships and/or grants administered and processed by the Cox College Financial Aid Department during the calendar year. The amount of any scholarships or grants reported for the calendar year may reduce the amount of any allowable tuition and fee deduction or education credit that you are entitled to for the 2013 tax year. Please consult a professional tax preparer for more detailed information.

Download a printable copy here

Tax Benefits for Education – 1098-T

As required by the Internal Revenue Service (IRS), Form 1098-T is mailed by Jan. 31 to all students who had qualified tuition and other related educational expenses billed to them during the previous calendar year.

The 1098-T form is informational only and should not be considered as tax advice. It serves to alert students that they may be eligible for federal income tax education credits such as the Lifetime Learning Credit and the Hope Credit as part of their Federal Income Tax Return. IRS Publication 970 “Tax Benefits for Higher Education” as well as Chapter 35 of IRS Publication 17 provide additional information on these credits. While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax credit. To determine the amount of qualified tuition and fees paid, and the amount of scholarships and grants received, a taxpayer should use their own financial records. There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.


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. Cox College 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, and lab fees, a student must pay to be enrolled at or attend an eligible education institution. Tuition waivers and/or discounts are considered reductions to qualified tuition and expenses.

Do the “Amounts Billed” figures in Box 2 of my 1098-T equal the “Qualified Expenses” I can claim on my IRS Form 8863 as I file my taxes?

Not necessarily. The college 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.

How did the college figure out what amounts to include in Form 1098-T 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 the college. If you received other forms of outside scholarships and grants not administered by the college, it is your responsibility to adjust the figure accordingly. Third party payments do not include payments made by your parent or other individuals.

I am being taxed on my employer provided educational assistance. Why should this be considered a scholarship or grant?

Cox College 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 the student to adjust their qualified tuition and related expenses accordingly based on the taxability of their employer benefits.

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