Explanation of IRS Form 1098-T

The IRS Form 1098-T is provided, as required by the IRS, to provide information that may assist you in completing your individual tax return. The information listed on IRS Form 1098-T may be different than the amount you actually paid towards Qualified Tuition and Related Expenses (hereafter known as QTRE). We strongly recommend seeking professional assistance when claiming an education tax credit. Regardless of the information provided on the 1098-T, if you choose to claim an education tax credit, you should always keep documentation such as invoices and receipt of payment that supports any claimed tax credit even if you report only what is on IRS Form 1098-T.

  • All information that Sam Houston State University can or will provide you is either on the 1098-T form or is included on this webpage. We are not allowed to discuss tax implications, how this form may relate to you, or give tax advice. Please consult your tax preparer with all questions related to this document. Some helpful links to the IRS at the bottom of this page may provide you more information related to how form 1098-T may affect you. As we cannot provide tax advice or the implications of the IRS Form 1098-T, we will only be able to direct you or your tax preparer to this webpage to answer your questions.

Amounts Paid for Qualified Tuition and Related Expenses

BOX 1 of IRS Form 1098-T reports payments towards the qualified tuition related expenses during the calendar year. Consult a tax professional for explanation. For purposes of IRS Form 1098-T, Sam Houston State University has determined based on interpretation of the limited IRS guidance provided that the following charges are included or not in qualified tuition related expenses. Please note, IRS Publication 970 states that "the amount on form 1098-T might be different from the amount you actually paid and are deemed to have paid." Further IRS Form 8863 instructions state that "The amount of qualified Tuition and related expenses reported on Form 1098-T may not reflect the total amount of the qualified tuition and related expenses paid during the year for which you may claim the tax credit. You may include qualified tuition and related expenses that are not reported on IRS Form 1098-T when claiming one of the related credits if you can substantiate payment of these expenses."

Qualified Tuition and Related Expenses INCLUDED

  • Resident and Non-resident Tuition
  • Program specific charges
  • Required General Fees (Excludes Medical Fee Charge)
  • Textbook Fee (undergraduate)
  • Education & Technology Fee
  • Student Activity Fee

Charges not considered Qualified Tuition and Related expenses and therefore NOT INCLUDED

  • Housing related charges
  • Dining, Meal Plans, Express Account Charges
  • Insurance
  • Late Fees, Interest on Past Due Account
  • Library Fines, Fees
  • Orientation Fees
  • Parking Permit or fines
  • Medical Fee
  • Other Health Service charges
  • Department fees for non-return or damage (ie Books not returned, Chemistry Breakage)

Please note that the timing of each charge and payment/scholarship are important regarding which year they are reported in. In the current calendar year, many students had payments larger than their QTRE which may include payments towards non-qualified tuition related expenses such as housing, dining, medical, and parking. Box 1 may include some or all future Spring term charges. (Loaded in December of the current calendar year) In many of those same circumstances, the student also received scholarships and grants for the future Spring term charges that did not post until the following calendar year. This may cause the following calendar year 1098-T to have zero in BOX 1 but BOX 5 would be populated. Please consult a tax preparer regarding what this means to your individual tax situation.

Scholarships and/or Grants

BOX 5 of IRS Form 1098-T reports the total of scholarships, grants, or waivers/exemptions administered or processed by the Office of Student Account Services and/or the Office of Student Financial Aid during the calendar year.

The amount reported in BOX 5 includes:

  • Scholarships
  • Grants
  • Third Party payments
  • Waivers/Exemptions (i.e., Hazelwood, Adoption waiver, Book Waiver etc.)
  • Per IRS instruction, Veteran's Education Benefit amounts received are included in BOX 5.

The amount reported in BOX 5 does not include:

  • Student Loans
  • Work Study
  • Scholarships, grants, reimbursements, or other types of sponsorships not administered by the Office of Student Account Services and/or the Office of Student Financial Aid.
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