1098-T Tax Form

The 1098-T form is used by eligible educational institutions to report information about their students to the IRS as required by the Taxpayer Relief Act of 1997.  Eligible educational institutions are required to submit the student’s name, address, taxpayer’s identification number (TIN), enrollment status, amounts pertaining to qualified tuition and related expenses, and scholarships and/or grants, taxable or not.  A 1098-T form must also be provided to each applicable student.

1. You would receive a 1098-T only if you had out-of-pocket payments, whether paid by you or with a loan, for “qualified educational expenses.”   IRS Publication 970 defines "qualified educational expenses" as tuition, fees, and books.
2. You will not receive a 1098-T on the portion of tuition paid with tax-free educational assistance.   Per IRS guidelines:  If you pay qualified education expenses with certain tax-free funds, you cannot claim a credit for those amounts. You must reduce the qualified education expenses by the amount of any tax-free educational assistance and refund(s) you received.  A 1098-T is, therefore, not issued for the portion of tuition paid with tax-free educational assistance including:
   • The tax-free part of scholarships and fellowships,
   • Pell grants,
   • Employer-provided educational assistance,
   • Veterans' educational assistance, and/or
   • Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance (including CAP and FSEOG grants).

In January of each year, Spokane Colleges provides secure electronic access to your 1098-T. This IRS Form 1098-T is for all students who had qualified tuition and other related educational expenses billed to them during the previous calendar year.

It is likely due to one of the following:

• You are not a US citizen or resident alien student for tax purposes.
• You received no academic credit for the calendar year.
• You didn’t have a valid SSN on record at the time of processing.
• Your charges were covered completely with scholarships and/or grants.

Yes. Section 6050S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires institutions to file information returns to assist taxpayers and the IRS in determining eligibility for the Hope and Lifetime Learning education tax credits.

The IRS instructs institutions to report either payments received (Box 1) or amounts billed for qualified tuition and related expenses (Box 2) on the 1098-T. Once an institution has selected one of these options, they cannot change reporting methods between calendar years without IRS permission. Spokane Colleges reports qualified tuition and related expenses that were billed during the tax year ( Box 2 ); therefore, Box 1 - Payments Received for Qualified Tuition and Related Expenses will be blank.

Qualified tuition and related expenses refer to tuition and required fees, such as segregated fees and lab fees, a student must pay to be enrolled at or attend an eligible education institution.  Tuition waivers and remissions are considered reductions to qualified tuition and expenses.

Qualified expenses do not include:

1. Amounts paid for any course or education involving sports, games or hobbies unless the course or other education is required as part of the student's degree program or is taken to acquire or improve job skills.
2. Charges and fees for room, board, insurance, transportation, personal, living and other family expenses.
3. The cost of books and equipment are generally not qualified expenses because eligible educational institutions usually do not require that the cost of the books or equipment be paid to the institution as a condition of the student's enrollment or attendance at the institution.  However, some campuses may have a mandatory textbook fee or rental program which may be included as a qualified related expense.

Not necessarily. Spokane Colleges is required to provide the "amounts billed" and "scholarship or grant" figures to help you determine the amount of qualified expenses you can claim on your IRS Form 8863. Per Internal Revenue Code Section 25A, taxpayers may claim an education tax credit only with respect to qualified tuition and related expenses paid (not billed) during the calendar year. The qualified amounts paid by student loans may count as payments eligible for these purposes. Scholarships and grants received may reduce your eligible payment amounts. See IRS Publication 970 for information to determine your qualified expenses paid amount.  Please talk to a tax consultant for tax advice.

This information may be found on your campus' Student Information System on your tuition account or on-line billing statement history. If you are a parent looking for this information for a student, please ask your student to access this information for you.

This box shows the amount of any tuition and fees reductions in the current calendar year for charges that were billed in a previous calendar year.

The figure in Box 5 includes scholarships, grants and, if applicable, payments made by a third party under formal billing arrangements (i.e. outside scholarships, employer provided educational assistance (regardless of taxability), military, etc.) which have been administered by Spokane Colleges. If you received other forms of outside scholarships and grants not administered by Spokane Colleges, it is your responsibility to adjust the figure accordingly. Third party payments do not include payments made by your parent or other individuals.

Spokane Colleges does not determine whether your education benefits are being taxed by your employer. As such scholarships and grants are increased by 100% of any employer provided payments under a formal billing arrangement and it is up to the student to adjust their qualified tuition and related expenses accordingly based on the taxability of their employer benefits.

This box shows the amount of any scholarship, grant, and if applicable, third-party reductions in the current calendar year for aid that was credited in a previous calendar year.

Box 8 will not be checked if you were not enrolled at a half-time status during an academic period which is either enrolled or billed during the calendar year. Spokane Colleges checks this box if you were half-time or more for at least one term beginning during the year. This information is important in determining eligibility for the Hope Credit.

The single most important information on the form is your Social Security Number. You must submit a written request to change or correct your SSN by mail or in person to the Registrar's Office. You may be required to supply a signed, legible copy of your Social Security card or complete Form W-9S (Request for Student's or Borrower's Taxpayer Identification Number and Certification). Form W-9S is the official IRS form used to state your SSN. You need only complete Part I of this form when requesting a 1098-T. Enter your SSN in the spaces marked "Taxpayer identification number.”  After March 1, the 1098-T can’t be updated and resent to the IRS for the year.

Generally, foreign students cannot claim a credit. However, some foreign students may be eligible. Review IRS forms, instructions and publications for guidance.

Your name is a key element on your tax information. Contact the Spokane Community College’s Admissions Office at (509) 533-8020 or Spokane Falls Community College’s Admissions Office at (509) 533-3500.

No. The address shown on Form 1098-T is irrelevant for IRS income tax filing purposes. However, you should make sure Spokane Colleges has your current information. 

Spokane Colleges will not be reprinting copies of the 1098-T form.  In order to receive a copy of the submitted 1098-T form, you will need to consent to receive it electronically.  

1. Log into ctcLink.
2. Select the Financial Account tile.
3. Select the Accounts Services button on the left menu to expand and show the View 1098-T option.
4. Select the View 1098-T button to display available 1098-T’s.
5. A button allowing you to consent to view your 1098-T online becomes available if you have not viewed your 1098-T already.
6. Select the Grant Consent button to display the 1098-T Consent Agreement text.
7. Select the ‘Yes, I have read the agreement’ checkbox and then select the Submit button.

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