Understanding your 1098-T

 

Education tax credits may be available to you if you are paying educational costs for yourself or a student who is an immediate member of your family.

The Community College of Rhode Island is required by federal law to provide a completed IRS 1098-T form to all students enrolled in courses for "credit" for which a reportable transaction is made for any given calendar year. A reportable transaction is defined as tuition and certain fees a student must pay to enroll at the college. This student enrollment and financial data is then transmitted to the IRS.

 

For the IRS Form 1098-T, the Community College of Rhode Island reports:

Box 1 - payments received for qualified tuition and related expenses
Box 4 - adjustments made for a prior year
Box 5 - the total amount of scholarships and or grants
Box 6 - adjustments to scholarships or grants for a prior year

The amounts reported on Form 1098-T do not determine a student's eligibility for education tax credits or the taxability of scholarships and grants. Students are responsible for determining the tax treatment of amounts reported on Form 1098-T and should consult a qualified tax advisor regarding their individual circumstances.

The Community College of Rhode Island mails Form 1098-T to eligible students by January 31 for the prior calendar year's reportable activity, as required by federal law. [irs.gov]

Please note: Charges for textbooks, course materials, and First Day Complete are not included in the qualified tuition and related expenses reported on Form 1098-T because students may opt out of these charges or obtain materials from another source. These charges can be viewed on your term statement in the MyAccount card. Students should consult their tax advisor regarding the tax treatment of book and course material expenses.

How to Print an Official copy of your Tax Form 1098-T

 

In order to provide you with IRS Form 1098-T and to report your student financial data to the IRS the college must have:

• Your valid Social Security Number (SSN) on file.
• Your valid address to ensure timely and accurate reporting of your Form 1098-T each year. Please keep your address up to date by contacting the Office of One Stop Student Services.

For complete information regarding Education Tax Credits see the most current versions of IRS Publication 970, Tax Benefits for Education, IRS Form 8863, Education Credits, or consult your tax advisor.

Note - The college is not required and does not provide Form 1098-T for courses which no academic credit is offered.