The Taxpayer Relief Act of 1997 created two new tax credits associated with higher education: the Hope Credit and the Lifetime Learning Credit, also referred to as education credits. The Hope Credit generally applies to 2008 and earlier tax years. The American Opportunity Credit modifies the existing Hope Credit for tax year effective 2009, making the benefit available to a broader range of taxpayers. Many of those eligible may qualify for the maximum credit of $2,500 per student. Those eligible for the Lifetime Learning Credit may qualify for a credit of up to $2,000.00 for qualified education expenses paid for all students enrolled in eligible educational institutions. The Tuition and Fees deduction can reduce the amount of your income subject to tax by up to $4,000. You cannot take both an education credit and the tuition and fees deduction for the same student for the same year. The details of these and other higher education tax benefits associated with the Taxpayer Relief Act of 1997, including a description of qualifying expenses, can be found on the IRS website, at the Tax Benefits for Education: Information Center.
The College of William and Mary will issue a Tuition Statement (IRS form 1098-T) to each student indicating the amount charged by the College for qualified tuition and related expenses incurred during the calendar year, along with additional required information. The form will be mailed by the end of January. The amount shown in Box 2 , amounts billed for qualified tuition and related expenses, may represent an amount other than the amount actually paid in the calendar year. Calendar year 2003 was the first year the IRS has required that this type of information be supplied on the 1098-T. This information is to assist students in the identification of tax credit qualifying expenses, if applicable, when used in conjunction with the appropriate IRS publications and forms. The College can assist in the review of the College-provided information, but we cannot provide tax advice.
The College of William and Mary elected to report amounts billed for qualified tuition and related expenses during the calendar year (Box 2) instead of total payments received by the institution for qualified tuition and related expenses (Box 1 intentionally left blank). Please read the Instructions for Student on your Copy B of your 1098-T Tuition Statement for a description of each Box. The dollar amounts reported in these boxes are not necessarily the amounts you would report on your tax return and may be different than what you actually paid. The taxpayer should refer to IRS publication 970 (pdf) and Form 8863 (pdf) for further information regarding the 1098-T and related tax issues or consult your tax advisor.
The College is prohibited from offering any tax advice.
The Taxpayer should not refer to the institution for explanations relating to the eligibility requirements for, and/or calculation of, any allowable education tax credit or tuition and fees deduction. The final decision for determining eligible educational expenses is the taxpayer's responsibility.
A portion of the full-time Tuition and Fees expense at the College of William and Mary includes charges for student health center, counseling center and bus service. These fees are not qualified and not included in the amount shown in Box 2 of the 1098-T. Hobby courses or special fee courses (i.e. music, art, kinesiology) have been included in Box 2 . According to the IRS, these expenses are qualified if the course is part of the individual's degree program or the individual takes the course to acquire or improve job skills.
The IRS is promoting the following new tools on their website:
Interactive Tax Assistant - an online progression of questions to help taxpayers determine their eligibility for either the AOTC, the Lifetime Learning Credit or the above-the-line deduction for tuition and fees.
For more information, please visit the The Internal Revenue Service website.
Frequently Asked Questions
What is a 1098-T?
The 1098-T form is a tuition statement. It is an information return that colleges and universities are required to furnish to students to assist them in determining their eligibility for the American Opportunity and Lifetime Learning education credits or Tuition and Fees deduction.
Where can I find additional information concerning the education credits?
For information about the deduction or credit, see Publication 970 [Tax Benefits for Education] (pdf), Form 8863 [Education Credits] (pdf), Form 8917 (Tuition and Fees Deduction), and the instructions for Form 1040 (pdf) or Form 1040A (pdf). These can all be found on the The Internal Revenue Service website.
Did you send a copy of this form to the IRS?
Yes, The College of William and Mary is required to send a copy of the 1098-T to the IRS.
What do I do with the 1098-T form?
Keep it for your records. You are not required to attach it to your return since the College furnishes a copy to the IRS. The information on the statement will help you determine if you can claim an education credit or tuition deduction.
I made payments to the College of W&M but Box 1 is blank, why?
Institutions may elect to report payments received in Box 1 of the form OR amounts billed in Box 2. The College of W&M reports amounts billed (Box 2). Box 1 is intentionally left blank.
I received scholarships that are not included in Box 5, Scholarship or Grants, why?
The College of W&M reports scholarships or grants administered and processed by the College. We may not include scholarships received by an organization outside the College since we do not administer them. The receipt of the payment on your behalf does not qualify as 'administered' by the College. Those not reported on your 1098T by the College could potentially reduce the amount of the education credit you claim for the year. Please see the IRS Publications referenced above to determine the treatment of scholarship funds received.
Why didn't I receive 1098-T?
Institutions are not required to furnish a 1098-T to non-resident aliens; to individuals whose qualified tuition and related expenses are waived or paid with scholarships; to individuals enrolled only in noncredit courses; to individuals whose qualified tuition and related expenses are covered by a formal billing arrangement; or to those individuals whose calculations net to zero.
Can I receive more than one 1098-T from the same institution?
Yes. The information reported on the separate 1098-Ts is not duplicated. You may have attended the Law School at The College of William & Mary and also studied abroad with the Law School. In this case, you may receive one from the Bursar's Office and one from the Law School.
Who do I contact for assistance in the review of the College-provided information?
|1098-T received from:||Contact:|
|The College of William and Mary
|The Student Accounts Office
|The College of William & Mary
The Marshall-Wythe School of Law Foundation
(Madrid and CLCT Summer Programs)
|Int'l Programs Office at The Law School
|The College of William & Mary
Executive MBA Program-Business School Foundation
|The School of Business
How can I get a copy of my 1098-T?
Please contact the appropriate area listed above.
Can I view a copy of my 1098-T online?
For those 1098Ts produced via the Bursar's Office, you can login to myWM: select the 'Student' tab, click on 'Student Account', click on '1098T Tax Notification', enter tax year and submit. All others, please contact the appropriate area listed above.
Can I get a copy of my student account showing all charges and payments for the calendar year?
Please contact the appropriate area listed above.
The Social Security number on my 1098-T is not correct, what should I do?
Furnish the correct number by submitting a written request to change your SSN in person to the Registrar's Office. You will be required to show your social security card for verification purposes. Also, please notify the Bursar's Office immediately of any error so we may correct your 1098T. Please visit the College of William & Mary Registrar's Office website for additional information concerning an incorrect SSN.
The name and/or address on my 1098-T is not correct, what should I do?
Please contact the Registrar's Office to submit the appropriate changes. Also, please notify the Bursar's Office immediately of any error so we may correct your 1098T. Please visit the College of William & Mary Registrar's Office website for additional information concerning an incorrect name and/or address.