IRS Tax Information FAQs
Form 1098-T frequently asked questions:
Q. What is the IRS Form 1098-T?
The Form 1098-T is a statement colleges and universities are required to issue to students. It provides the total dollar amount paid on your student account toward qualified tuition and related expenses (QTRE) in a single tax year-January 1 through December 31. This is different from an academic year, which runs July 1 through June 30. This form can be used to determine if you are eligible for Education Tax Credits (consult your tax preparer for more information).
Q. What is included in QTRE?
Qualified expenses are amounts paid for tuition, fees and other related expenses for an eligible student which are required for enrollment at an eligible educational institution. The following expenses are not considered qualified education expenses:
- Room and board
- Medical expenses (including student health fees)
- Personal living or family expenses
- Late fees of any kind
Q. When will I receive my Form 1098-T?
Your Form 1098-T will be available electronically on or before January 31 (or the next business day) through your Lion's Den account lionsden.molloy.edu/ics under the My Finances Tab. You will find the link on the right side of the page under "Tax Information." The Office of the Bursar will send an email letting you know the forms are available. Paper forms will be mailed on or before January 31 (or the next business day) to those students who did not obtain the form electronically.
Q. What is reported on the Form 1098-T?
Most importantly the total dollar amount paid is reported in Box 1 on the 1098-T and includes payments from all sources: federal financial aid, institutional grants and scholarships, outside scholarships, NYS awards, private student loans, 529 payments and payments made by cash, check or credit card. Scholarships and grants are reported in Box 1 and Box 5-Box 5 is only grants and scholarships. Paid amounts are reported in the tax year in which they were made. At Molloy, your spring charges are billed in December each year. Payments made for those spring charges in January will be reported on the following year's 1098-T.
IRS Form 8300:
The IRS requires that colleges and universities file Form 8300 for cash payments exceeding $10,000 in one transaction or in two or more related transactions. Transactions are considered related if multiple payments over a 12-month period exceed $10,000.
You will receive written notification from the Office of the Bursar, on or before January 31 of the year following the calendar year in which the cash payment(s) were received, informing you that a Form 8300 was submitted to the IRS pertaining to the cash payment(s).
Please consult your tax preparer for more information regarding the Form 8300.
We are unable to provide tax advice pertaining to the Form 1098-T or the Form 8300. Please consult your tax preparer for more information.
You can also access the IRS website for more information www.irs.gov/forms-instructions - you can search the form for which you are interested.