NEW REQUIREMENTS FOR IRS 1098-T TUITION STATEMENT

Last year, legislation changed Form 1098-T reporting requirements. Beginning with the 2016 tax year, institutions will be required to report payments for qualified tuition and related expenses in Box 1 of IRS Form 1098-T. Prior to this change, educational institutions reported either payments received for qualified tuition and related expenses on Form 1098-T, Box 1 or amounts billed during a calendar year in Box 2. Fortunately the IRS is offering some amnesty this year to allow institutions to update their procedures and software.

Beginning next year (2018), only the qualified tuition and related expenses actually paid can be reported on Form 1098-T. Qualified tuition and related expenses are tuition, fees, and course materials required for a student to be enrolled at or attend an eligible educational institution. Charges and fees for room, board, insurance, medical expenses (including student health fees), transportation, and similar personal, living, or family expenses, aren’t included.

If an institution reports the aggregate amount billed for qualified tuition and related expenses on Form 1098-T instead of the aggregate amount of payments received for qualified tuition and related expenses the IRS will be imposing penalties. http://bit.ly/2iEsjTp