For a taxpayer who has paid tuition from an eligible educational institution, Form 1098-T is particularly important.
Some confusion exists about when or if an educational institution needs to issue Form 1098-T.
In addition, relying on Form 1098-T, an IRS mandated informational form, might result in an incorrect determination of the taxability of scholarships and education tax credits.
Form 1098-T and its Impact on Taxable Scholarships and Education Credits
1098-t Processing & Distribution Services The Successful Contractor Will: *print And Mail Or Deliver Electronically Irs Form 1098-t
(or Substitute Form) By The Irs Specified Due Date.
Form 1098-T presents tax advisers with various challenges.
Indirect relationship: One major challenge presented by Form 1098-T is that its numbers usually do not transfer directly to Form 1040 or 8863, Education Credits (Hope and Lifetime Learning Credits).
Educational institutions are required to report qualified tuition and related expenses by filing an annual tuition statement with the IRS, Form 1098-T.
Form 1098-T (shown in Exhibit 1) must be furnished to the student as well as to the IRS.
6050S(a)) on new Form 1098-T, Tuition Payments Statement.
The 1998 Form 1098-T (for reporting both credits) contains the following fields: the filer's name and address, the student's TIN, name and address and check-off as to whether the student is half-time or a graduate student.
For 1998, institutions will be required to report on Form 1098-T
the name, address and taxpayer identification number (TIN) of both the eligible educational institution that received the payments and the student for whom payments of qualified tuition and related expenses were received during 1998; an indication as to whether the student was enrolled for at least half the full-time academic workload during any academic period commencing in 1998; and an indication of whether the student was enrolled in a graduate-level program.