1098-T FAQ’S
What is the 1098-T Form?
The 1098-T form is used by eligible educational institutions to report information about their students to the IRS as required by the Taxpayer Relief Act of 1997. Pacific Lutheran University must report amounts to the IRS pertaining to qualified tuition and related expenses, as well as scholarships and/or grants, taxable or not. A 1098-T form must also be provided to each applicable student. This form is informational only. It serves to alert students that they may be eligible for federal income tax education credits. It should not be considered as tax opinion or advice. 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. 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 did I receive a 1098-T and what am I supposed to do with it?
In January of each year, Pacific Lutheran University mails an IRS Form 1098-T to all students who had qualified tuition and other related educational expenses billed to them during the previous calendar year.
NOTE: It is up to each taxpayer to determine eligibility for the credits and how to calculate them. This form is intended to assist you in the preparation of your federal income tax return. Your accountant, tax preparer, or the Internal Revenue Service (www.irs.gov) can best advise you in the utilization of this form when preparing your taxes.
Why was I excluded from receiving a 1098-T?
Pacific Lutheran University is not required to issue a 1098-T to students whose qualified tuition and related expenses are paid entirely with scholarships or grants (when Box 5 is equal to or greater than Box 2) or if there are no reportable transactions made to your account during the calendar year. No reportable transactions most commonly occur when a student graduates or withdraws in January or Spring terms during the calendar year. If you register for January or Spring classes in November or December of the prior calendar year the effective date of those charges would have been in December, making those charges eligible to claim the previous year and should have reflected on the previous year’s 1098-T.
What information is included the 1098-T?
Pacific Lutheran University will report all charges billed and scholarships/grants applied to the account within the calendar year (Jan. 1st-Dec. 31st).
Why isn't there an amount in Box 1, “Payments Received for Qualified Tuition and Related Expenses”?
The IRS instructions allow reporting 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. PLU reports qualified tuition and related expenses that were billed during the tax year (Box 2) and scholarships and grants (Box 5), therefore, Box 1 – Payments Received for Qualified Tuition and Related Expenses, will be blank.
What amounts appear in Box 2, “Amounts Billed for Qualified Tuition and Related Expenses”?
Qualified tuition and related expenses refer to tuition and required fees a student must pay to be enrolled at or attend an eligible education institution that were billed between January 1 and December 31. Non-qualified charges include the following: books, housing, meal plan, health fee, insurance, or any transportation fees or costs. This is true even if the amount must be paid to the institution as a condition of enrollment or attendance.
What amounts appear in Box 4, Adjustments Made for a Prior Year?
The amount in this box is the sum of all reductions made during the current calendar year in qualified tuition and fees related to amounts billed in the previous calendar year and reported on prior year 1098-T.
What amounts appear in Box 5, “Scholarships or Grants”?
This box contains the sum of all scholarships and grants applied during the calendar year
What amounts appear in Box 6, “Adjustments to Scholarships or Grants for a Prior Year”?
This box shows the amount of any scholarship, grant and, if applicable, third party reductions in the current calendar year for aid that was credited in a previous calendar year.
How can I get an itemized listing of my financial activity that is on my 1098-T form?
An itemized listing by tax year is available on Banner Web online at https://banweb.plu.edu. Follow this path; Enter Secure Area (Banner Web) -> Login to Self Service Using Your User ID and Pin -> Student Services-> Student Accounts -> Tax Notification -> Enter Applicable Tax Year. This will bring up a representation of your 1098-T. To access the itemized listing of qualified tuition and related expenses or scholarships/grants click on the highlighted amounts in Box 2, 4, 5, and/or 6.
How do I get a reprint of my 1098-T form?
If you did not receive a 1098-T due to a change of address, or you misplaced the form, you can print a duplicate. The duplicate form is available on Banner Web online at https://banweb.plu.edu. Follow this path; Enter Secure Area (Banner Web) -> Login to Self Service Using Your User ID and Pin -> Student Services-> Student Accounts -> Tax Notification -> Enter Applicable Tax Year. This will bring up a representation of your 1098-T. If you do not have a Banner Web User ID and Pin please contact the Student Accounts Office at 253-535-7117. The Student Accounts Office will only issue reprints via mail or pick up. Please note reprints may not be mailed or available for pick up for up to 3 business days from the original request.
What if I still have questions?
If you have additional questions/concerns you can reach us
· by E-mail:
· by Phone: (253) 535-7115
Note: Please be advised that PLU is prohibited from providing legal, tax, or accounting advice to students and we are not responsible for any use you make of this information.
Where can I get more information about the tax credits?
· Consult your tax advisor as to your particular eligibility for the credits.
· Contact the Internal Revenue Service through their taxpayer assistance number at
(800) 829-1040 or their website at http://www.irs.gov/
· IRS Publication 970 (Tax Benefits for Higher Education) at http://www.irs.gov/pub/irs-pdf/p970.pdf
· IRS Form 8863, Education Credits (Hope and Lifetime Learning Credits): http://www.irs.gov/pub/irs-pdf/f8863.pdf