The following questions and answers will guide you through the basics of the 1098-T tax form and offer explanations about the boxes on the form.
What is a 1098-T form?
IRS Form 1098-T assists the student/family in determining if they qualify for certain education related tax credits. The IRS requires educational institutions to file Form 1098-T for each enrolled student who has incurred qualified tuition and related expenses during calendar year 2016. A copy is provided to the student.
Who is eligible to receive a Form 1098-T?
Students who are U.S. citizens and permanent residents and have incurred qualified tuition and related expenses during calendar year 2016 will receive a Form 1098-T.
Note: Penn must have a valid U.S. social security number on the Student Records System in order to submit a valid 1098-T to the IRS. Students with an assigned 9 digit University I.D. must complete IRS Form W-9S and either mail or hand deliver the completed W-9S to Student Financial Services, Room 100, Franklin Building. The IRS will not be able to validate your eligibility for the tax credit without a valid Social Security number.
Who will not receive the Form 1098-T?
The University is not required to file Form 1098-T for non-resident aliens, students who were enrolled only in non-credit courses during calendar year 2016 or students whose qualified tuition and related expenses were fully covered by grant/scholarship.
How and when can I access my 1098-T for calendar year 2016?
Access your 1098-T online through Penn’s partner, ACS Tax Credit Reporting Services (TCRS). First, you will need to provide consent to TCRS to receive an email notification when your 1098-T Form becomes available. To do so, log on to the TCRS website after January 22, 2017 (subject to change) at www.1098-T.com and select Access Your Record. You will need to provide your U.S. social security number.
Note: If you have completed this consent step in previous years, you are already signed up and will receive an email notification when your 1098-T for 2016 is ready.
Is this the only way to receive my 1098-T Form?
If you do not access the 1098-T online, ACS will mail it to your permanent address of record
(as listed on Penn InTouch) on or about January 31, 2017.
What is the information reported in the boxes?
- Box 1 is not used for reporting purposes by Penn.
- Box 2 represents the total amount billed for qualified tuition and related expenses for terms the student is enrolled within calendar year 2016 (Spring 2016, Summer Sessions 1 and 2 2016 and Fall 2016). Please note, an amount billed for qualified tuition and related expenses within calendar year 2016 for a future term will not be counted in Box 2. (i.e. amounts billed in 2016 for qualified tuition and related expenses for the Spring semester 2017).
What are some examples of qualified tuition and related expenses?
Qualified Tuition & Related Expenses
- General fee
- Technology fee
- Recreation fee
- Program fees
- Lab fees
- Online Course fees
- Bookstore purchases
- Late fees
- Student Health Insurance
- Health Care Assessment fees
- Telephone Service fees
For more information please review Education Tax Credits and IRS Publication 970, for tax year 2016, when it becomes available.
- Box 4 reflects prior year adjustments to qualified tuition and related expenses.
- Box 5 reflects grant and scholarship received by the student for terms within the
2016 tax year (Spring 2016, Summer Sessions 1 and 2 2016 and Fall 2016).
- Box 6 reflects adjustments for prior year grant and scholarship.
- Box 7 is not used for reporting purposes.
- Box 8 indicates that the student was enrolled at least half time in a degree or certificate program during the 2016 tax year.
- Box 9 is checked for all graduate level students.
- Box 10 is not being used for reporting purposes.