What is the purpose of a 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. Eligible educational institutions are required to submit the student’s name, address, and taxpayer’s identification number (TIN), enrollment and academic status. Beginning with 2003, educational institutions must also 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 eligible 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 form and what am I supposed to do with it?
Colleges and universities are required to issue the 1098-T form for the purpose of determining a student’s eligibility for the Hope and Lifetime Learning education tax credits. Receipt of the 1098-T form does not imply eligibility for the tax credit. Students and families should consult their tax advisor or IRS Publication 970, Tax Benefits for Education, to determine their eligibility. The 1098-T form is informational only and should not be considered as a tax opinion or advice. If you have questions about how to calculate your education tax benefit, you should consult your tax professional or refer to the IRS.
What information is contained in the boxes on 1098-T form?
- Box 1 – Payments received, from all sources, up to qualified tuition and related expenses.
- Box 2 – Amount billed for qualified tuition and related expenses will no longer be displayed in this box; only calculated to assist with amount reported in Box 1.
- Box 3 – This box will be checked if the educational institution has changed its reporting method for the tax year. Please Note: Reporting method did change for 2018 tax year; Jackson College changed from reporting in Box 2 (amount billed for qualified tuition and related expenses) to reporting in Box 1 (payments received for qualified tuition and related expenses).
- Box 4 – Shows any adjustment made for a prior year for qualified tuition and related expenses that were reported on a prior year 1098-T form.
- Box 5 – Shows the total of all scholarships or grants administered and processed by Jackson College during the calendar year. Payments received from third party sponsors (e.g. employers, government or agency entities) are also included in Box 5. The amount of scholarships or grants for the calendar year (including those not reported by the institution) may reduce the amount of any allowable tuition and fees deduction or the education credit you may claim for the year. If you had loans, such as Direct Federal Subsidized Loan, this is not included in this box; the loan servicer is responsible to send you a 1098-E tax statement.
- Box 6 – Shows adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. See Pub. 970 for how to report these amounts.
- Box 7 – This box will be checked if the amount in box 1 included amounts for an academic period beginning January-March of the following calendar/tax year.
- Box 8 – Shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study. If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the Hope credit.
- Box 9 – Not applicable.
- Box 10 – Not applicable.
Please Note: For tax years prior to 2018, pursuant to Internal Revenue Service’s tax regulation, the college is required to either report payments received for qualified tuition and related expenses in box 1 OR amount billed for qualified tuition and related expenses in box 2 of Form 1098-T. Previously, Jackson College elected for Box 2 only. For tax years beginning 2018 and future, Jackson College will report in Box 1, box 2 will no longer display amounts on the tax form.
My address on my 1098-T form has changed. Will this affect me when I file my return?
No. The address shown on a 1098-T form is irrelevant for IRS income tax filing purposes. However, you should update your address with Jackson College, which can be done through Student Services.
If my name on my 1098-T form is incorrect or has changed, how can I get this corrected?
To correct or change your name, you need to contact the Jackson College’s Student Services office to complete the requirements for a name change. Once your name has been changed in the college system, contact the Business Office to request a new corrected 1098-T form which will be made accessible through Jet Stream.
What is Jackson College’s Tax Identification Number?
The Tax ID Number for Jackson College is 38-1795703
Can I access my 1098-T form electronically?
Yes, you can access your 1098-T form electronically by logging into Jet Stream and clicking on the Tax Information menu. You will have to grant consent to view your form electronically.
I did not receive a 1098-T form. Why?
Jackson College was not required to send you a form.
- Jackson College is only required to send 1098-T forms to students whose qualified tuition and related expenses are greater than the students’ scholarships and grants (Please refer to IRS Instructions for Forms 1098-E and 1098-T page 2 under exceptions).
As an example:
- Student A has payments received for qualified tuition and related expenses of $1800 (Box1) and scholarship and grants of $2350 (Box 5) for the prior calendar year. Student A will not be mailed a 1098-T form from Jackson College.
- Student B has payments received for qualified tuition and related expenses of $3,360 (Box 1) and scholarships and grants of $1,810 (Box 5) for the prior calendar year. Student B will receive a 1098-T form from Jackson College.
The address Jackson College has on record is not your current address.
- If you were mailed a 1098-T form, then it is available online through Jet Stream.
You do not have a valid social security number, or we do not have it on file
- If you do not have a valid social security number, or if it has never been reported to Jackson College, a 1098-T form may not have been issued. Please update your information by completing a W-9S (https://www.irs.gov/pub/irs-pdf/fw9s.pdf). W9-S forms should not be scanned and emailed, they should be uploaded to our secure mailbox at: www.jccmi.edu/securedocuments and select Business Office, or you can mail the W-9S to Jackson College, Attn: Business Office, 2111 Emmons Road, Jackson, MI 49201
Other reasons you may not have received a 1098-T form:
- Your entire qualified tuition and related expenses were paid under a “formal billing arrangement” where Jackson College billed an employer or government/agency entity.
- You are considered a nonresident alien.
- You were only enrolled in noncredit courses.
- You were enrolled less than half time
Why is box 2 of my 1098-T form blank?
In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses we billed to your student account for the calendar (tax) year. Due to a change to institution reporting requirements under federal law, beginning with tax year 2018, Jackson College will report in Box 1, the amount of the qualified tuition and related expenses you paid during the year. We will no longer report in Box 2. The amount for Box 2 will only be calculated to assist with amount reported in Box 1 but will not be displayed.
Can I receive a 1098-T form if I am an international student?
Most international students are not eligible to claim education tax credits with the U.S. Internal Revenue Service. International students who may be eligible are:
- permanent residents
- married to a U.S. citizen or permanent resident
- those who may be claimed as a dependent by a U.S. citizen or permanent resident
- those who have been in the U.S. long enough to file federal income tax returns as a resident
For more information about eligibility, see IRS Publication 970. Jackson College cannot provide tax advice. For additional information, contact your tax adviser or the IRS.
How do International Students Request a 1098-T Tax Form?
Jackson College must obtain your correct identifying number to file Form 1098-T with the IRS and to furnish a statement to you. This will be your Social Security Number (SSN) or, if you are not eligible to obtain an SSN, your Individual Taxpayer Identification Number (ITIN). If you do not submit your SSN or ITIN, you will not be denied access to the College; however, you may be subject to IRS civil penalties of $50 for failing to furnish a correct SSN or ITIN.
If your SSN or ITIN is not on file with the college, please update your information by completing a W-9S (https://www.irs.gov/pub/irs-pdf/fw9s.pdf). W9-S forms should not be scanned and emailed, they should be uploaded to our secure mailbox at: www.jccmi.edu/securedocuments and select Business Office, or you can mail the W-9S to Jackson College, Attn: Business Office, 2111 Emmons Road, Jackson, MI 49201.
If I must file an amended tax return due to a corrected form 1098-T, will I be compensated for the additional charges?
Jackson College does not compensate students or parents for these costs.
My tax preparer says that Jackson College must provide me with a 1098-T
Jackson College is not required, by the IRS, to furnish a 1098-T in the following instances:
- Payments made toward courses where no academic credit is offered.
- If the enrolled student is a nonresident alien, unless requested by the student.
- Students whose qualified tuition and related expenses are paid entirely with grants/scholarships.
- Students whose qualified tuition and related expenses are paid with a formal billing arrangement between Jackson College and the student’s employer or a governmental entity, such as the Department of Veterans’ Affairs or the Department of Defense.
What charges are included in the calculation for box 1?
Qualified Tuition and Related Expenses Charges not considered Qualified Tuition and Related Expenses Tuition Housing charges Class fees Meal Plan Online class fees Books Student services fees Payment plan enrollment fees or late fees Textbook access fees Housing damage charges
Who can I contact if I have still have questions?
Please contact the JC Cashier at 517.796.8420 and select option 1 or by e-mail at email@example.com.