IRS Tax Information FAQs
1098-T Frequently Asked Questions:
Q: What is the IRS Form 1098-T?
A: The Form 1098-T is a statement colleges and universities are required to issue to students. It provides the total dollar amount charged to your student account for what is referred to as qualified tuition and related expenses (QTRE) in a single tax year, January 1 through December 31 (different from an academic year, which runs July 1 through June 30). In addition, total dollar amount you received in scholarships and grants is included on the form.
This Form can be used to determine if you are eligible for Education Tax Credits (consult your tax preparer for more information).
Education tax credits can help offset the costs of education. The American Opportunity (Hope Credit extended) and the Lifetime Learning Credit are education credits you can subtract in full from the federal income tax, not just deduct from taxable income.
· Publication 970, Tax Benefits for Education
· Form 8863, Education Credits (Hope and Lifetime Learning Credits)
Please see the IRS website for full details: https://www.irs.gov/individuals/education-credits
Q: What is included in QTRE?
A: Qualified expenses are amounts paid for tuition, fees and other related expense for an eligible student that are required for enrollment or attendance at an eligible educational institution.
Even if you pay the following expenses to enroll or attend the school, the following are not qualified education expenses:
· Room and board
· Medical expenses (including student health fees)
· Similar personal, living or family expenses
A: When will I receive my Form 1098-T?
A. Your Form 1098-T will be available to you electronically on or before January 31 (or the next business day) through your Lion’s Den Account https://lionsden.molloy.edu/ICS/My_Finances/. You will find the link on the right side of the page under “Tax Information.” You will receive an email, on your Molloy email account, letting you know when the forms are available. Paper forms will be mailed on or before January 31 (or the next business day) to those students who choose not to obtain their Form 1098-T electronically.
Q: Why don’t the numbers reflect all of the charges/scholarships/grants for the academic year?
A: The Form 1098-T is used to report tuition and fees charged in a calendar/tax year and that does not, typically, coincide with an academic year. For example, tuition and fees for the Spring Semester are usually charged in December. So even though the charges are for a term that begins in January (a new tax year), they will appear on the previous year’s Form 1098-T because the charges happened before that tax year ended. Scholarships and Grants, on the other hand, are disbursed in January, so those numbers will be reported on the following year’s 1098-T.
(There is box on the 1098-T (box 7), which says “Checked if the amount in box 1 or 2 includes amounts for an academic period beginning January-March.” The box is checked for Molloy students. Please consult your tax preparer for more detailed information.)
Q: My tax preparer says I need a form with information in box 1 (amounts paid). Please send me an updated form.
A: Consistent with current IRS regulations, the College or University has the option to include information in box 1 (amount paid) or box 2 (amount charged)—but never both and never on a student-by-student basis. Your course and fee statement, which you can access on your Lion’s Den Account, reflects any payments made to your account along with a transaction date; you may want to provide this statement to your tax preparer in addition to your Form 1098-T. You can also contact the Office of the Bursar at 516-323-4100 to request a copy of your statement.
Please consult your tax preparer for more information regarding your Form 1098-T. We are unable to provide tax advice. You can also access the IRS website for more information: https://www.irs.gov/individuals/qualified-ed-expenses.
IRS Form 8300
The IRS requires that the College 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 was received, informing you that a Form 8300 was submitted to the IRS pertaining to your cash payment(s).
Please consult your tax preparer for more information regarding your Form 8300. We are unable to provide tax advice. You can also access the IRS website for more information: https://www.irs.gov/pub/irs-pdf/p1544.pdf