![]() We cannot adjust your 1098-T qualified charges to include transactions specifically excluded by tax credit programs such as room and board. Account Activity includes all transactions posted to the student account during the calendar year. To assist in supplementing your own records, students can access their account activity by logging in to the ConnectCarolina Student Center and selecting the “Pay Bills/Manage Student Finances” link. “Qualified expenses” for this purpose are defined more narrowly than they are for other programs, such as a 529 plan. You may have to file an amended income tax return (Form 1040-X) for the prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. Box 6 – Adjustments to scholarships or grants for a prior yearīox 6 shows adjustments to scholarships or grants for a prior year. The instructions for this box indicate that this amount, along with those not reported by us, may reduce the deduction or credit. Per IRS regulations, Box 5 includes any payments made by someone other than the student or family. This is because we are required to report the amounts received in the year received. Box 5 – Scholarships or Grantsīox 5 includes the amount of all scholarships or grants received in the calendar year reported, regardless of the term for which they were intended. However, during the transition year Box 4 will be missing the off-sets to payments that were adjusted from prior years. In 2018, during the transition to the “Payments Received” method, Box 4 will include amounts reported in Box 2 (“Amounts Billed”) in prior calendar years. Box 4 – Adjustments made for a prior yearīox 4 reports adjustments including changes made to items originally reported in Box 1 or Box 2 in a prior calendar year. Box 3 – Reporting method changeįor 2018, Box 3 will be checked because of the change from reporting “amounts billed” to “payments received”. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, we will report in Box 1 the amount of QTRE paid during the year. In previous years, the 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) billed to your student account for the calendar (tax) year. Only the portion of the payments applied to QTRE is reported in Box 1. QTRE includes payments from students and families, advance deposits, loans, scholarships, grants, and third party sponsor payments. The total in Box 1 includes all payments received by UNC-Chapel Hill in calendar year that pay for qualified tuition and related expenses (“QTRE” – see below), as defined by the IRS. Box 1 – Payments received for qualified tuition and related expenses The “Amounts Billed” methodology is no longer permitted by the IRS. Previously, UNC-Chapel Hill used the “Amounts Billed” rather than the “Payments Received” methodology. On the Form 1098-T, we report the name, the last 4 digits of the social security number and address of students, and indicate whether they were a graduate student and/or at least half-time during the calendar year. Please allow 10 days for arrival/delivery of 1098-Ts mailed to students who did not choose electronic delivery. Important Datesġ098-T forms will be available online through ConnectCarolina before the Jan. If you qualify for an educational credit, you should use your personal records and student account activity statements to determine the amounts that you actually paid toward the charges reported on the 1098-T. The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863 – the form used for calculating the education tax credits that a taxpayer may claim as part of your tax return. Its purpose is not to report scholarship income to the IRS. ![]() ![]() Form 1098-T is NOT to be filed with a tax return. Form 1098-T is an information tax document to aid taxpayers in determining whether they are eligible to claim a tax deduction or one of the education tax credits on their federal income tax return. The IRS requires the University to issue Form 1098-T, “Tuition Payments Statement,” to each student by Jan.
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