Tax Information - Tax Credit 1098-T

Tax Information - Tax Credit 1098-T

TAX INFORMATION- per IRS regulations, MSU makes 1098-T information available to students by January 31 of each year for the previous calendar year either online through Campus Connection or postmarked by January 31st.

SOCIAL SECURITY NUMBER REQUIREMENT – MSU is required to obtain an accurate Social Security number for every student which is submitted with the 1098-T. If MSU contacts you through mail or you have a checklist item on your Campus Connection Self Service requesting a Social Security number or a corrected Social Security number please submit required information per the directions received. 1098-T information submitted to the IRS without a Social Security number may be subject to fines/penalties by the IRS and possible audit.

1098-T TAX INFORMATION is information provided to the MSU student. Only the student can change their address or obtain the 1098-T in Campus Connection.  Information or questions relating to the information on the 1098T will only be provided or discussed with the MSU Student who is the holder of the account.

Important Frequently Asked Questions

How do I Obtain my 1098T online?
Go to your Student Center on Campus Connection, look for 1098-T and go through the Grant Consent process.

Once consent has been granted, MSU will no longer mail a paper 1098-T to the student. Documents will only be available online through Campus Connection. If consent was granted in a prior tax year, no action is needed to continue to receive an electronic form.

If I don't Grant Consent when and where will I receive my 1098-T?
Students who do not Go Green by granting consent to view/print the 1098-T online will receive a printed form at their Mailing/Home address listed in Campus Connection under Student Center, Personal Information with a postmark no later than January 31.   Check and update your address prior to the second Thursday of January.

What if I didn't receive my mailed 1098-T, lost it or threw it away?
1098-T information will not be provided over the phone or in any other format.

A duplicate 1098-T will not be mailed after the initial mailing.  Students can access the 1098-T online:

           1. Log into Campus Connection
           2. Select "View 1098-T Info."
           3. Select the preferred tax year.
           4. Print the form.

What is a 1098-T?
The 1098-T is a tuition statement that colleges and universities are required by the IRS to issue to students for their tax information.

The information on the 1098-T form is provided to assist each student/taxpayer in preparing the IRS FORM 8863, which is used to claim the American Opportunity or Lifetime Learning Credits. Once complete, the 8863 should be attached to the student/taxpayer's return to determine eligibility and the amount of the education credit (if any) that he/she may be entitled to on their Individual Income Tax Return.

Where can I find information regarding the IRS Tax Benefits for Education?
Go to: IRS Tax Benefits for Education

Why is Box 1 of my 1098-T blank?
Box 1 (payments received for qualified tuition and related expenses) is blank because MSU reports "Amounts billed" instead. The IRS provides the option for colleges/universities to report either "Payments received" in Box 1 OR "Amounts billed" in Box 2, but not both. MSU has elected to report "Amounts billed." IRS regulations prevent the colleges/universities from changing our reporting method for a current or prior tax year.

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. Most of the information needed must come from the student's personal financial records of what the student paid during the calendar year. The student/filer should ensure that supporting documentation is also provided to the IRS for payments made to MSU. Additionally, each taxpayer and his or her tax advisor must make the final determination of qualifying expenses.

What does the amount in Box 2 mean?
Box 2 (amounts billed for qualified tuition and related expenses) reflects the "qualified tuition and expenses" billed to your account during the tax year. "Qualified tuition and expenses," as defined by the IRS, includes tuition and related fees that are required for enrollment or attendance by the college/university. Box 2 WILL NOT include expenses billed for room, board, or books.  Box 2 will be net of any waivers received by the student for the calendar year.

What does the amount in Box 4 mean?
Box 4 (adjustments made for a prior year) reflects any refunds of tuition and fees billed in a previous tax year that you may have received in the current tax year.

What does the amount in Box 5 mean?
Box 5 (scholarships or grants) reflects any scholarships or grants applied to your account during the calendar year. Effective 2012, this will also include any payments received from third parties (excluding direct identifiable payments from family members and loan proceeds).

Funds from a 529 college savings plan must be specifically labeled as such when received by Student Finance, or the payment will be a 1098-T eligible source of income.

This box does not provide you the information required to determine if any portion of these amounts are taxable. We encourage you to read IRS Publication 970, IRS Code Section 117, or consult your tax preparer to determine whether any grants, scholarships, remission, stipends, fellowships, or third party payments may be taxable. For example, if ALL of the funds shown in Box 5 were used to pay only tuition, qualified fees, and books, it is possible that they can be excluded from taxable income. Scholarships are normally taxable if after tuition, qualified fees, and books, they are used to pay for housing, meals, insurance, travel and other non-qualified charges.

What does the check mark in Box 8 mean?
If there is a check mark in Box 8, it means that you were considered at least a half-time student during the tax year. At MSU, "at least half-time" is considered to be six or more credit hours in a semester.

What if I believe there is an error on my 1098-T?
If you believe there is an error on your 1098-T, you can contact the Business Office at 701-788-4757 or email Ashley.A.Mooney.1@mayvillestate.edu defining what you are questioning.  Please provide a daytime phone number and ID Number on the email.

Does any of the information on the 1098-T correlate to any amounts I can claim on my tax return?
Not necessarily! Only amounts billed by the MSU are on the 1098-T form. Whenever a student (or parent) wants to claim the tax credit for educational expenses or any other tax benefits relating to higher education - they must determine the amount of tuition actually paid - NOT BILLED. Furthermore, any related qualified expenses for the American Opportunity Tax Credit need to be determined from records kept by the taxpayer. MSU does not track these type of expenses on the 1098-T.

What if I need a copy my MSU Bookstore purchases?
It is up to the student to maintain receipts for books, supplies, etc. These receipts may not be available at a later date.