What is covered by 1098T?

1098T covers students' payments for qualified tuition and related expenses made from January 1 to December 31 of each year.

Exceptions:

  1. Cost of courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program
  2. Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships or grants
  3. Students whose qualified tuition and related expenses are covered by a formal billing arrangement between HCC and governmental entity or other 3rd party
  4. Non-resident alien students, unless requested by the student

Inquiries Regarding 1098T
Any questions should be addressed by e-mail to: bursar.office@hccs.edu

Frequently Asked Questions

1. What is the 1098-T 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, and taxpayer’s identification number (ITIN), enrollment and academic status. Beginning with 2003, educational institutions must also report amounts to the IRS pertaining to qualified tuition and related expenses. A 1098-T form must also be provided to each applicable student.

This form is informational only. It serves to alert students that they may be eligible for federal income tax education credits. It should not be considered as tax opinion or advice. The 1098-T, as designed and regulated by the IRS, is just a starting point. It does not contain all of the information needed to claim a tax credit.
There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.

2. In prior years I received 1098-T forms thru the mail. Will it be mailed this year?

In January of each year, HCC mails an IRS Form 1098-T to all students who paid for qualified tuition and other related educational expenses during the previous calendar year.

The form is available on line and students can choose to receive it electronically on your student center page, click view 1098T, then click Grant Consent, check Yes

I have read the agreement and click Submit or on the payment page, after selecting "make a payment" or setup a payment plan, click 1098.

3. What do I do with the form?

This form is informational only. It serves as a tool for students to determine if they are eligible for federal income tax education credit.

Receipt of Form 1098-T does not indicate eligibility for the tax credit. It is up to each taxpayer to determine eligibility for the credits and how to calculate them. 

4. What are the Tax Education Credits that I may be eligible for?

The American Opportunity tax credit, which expanded and renamed the already existing Hope scholarship credit, can be claimed in tax-years 2009 through 2017 for expenses paid for tuition, certain fees and course materials for higher education.

5. What is covered and not covered by 1098T?

The 1098T covers students' payments for qualified tuition and related expenses made from January 1 to December 31 of each year.

Exceptions:

  1. Cost of courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program
  2. Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships or grants
  3. Students whose qualified tuition and related expenses are covered by a formal billing arrangement between HCC and governmental entity or other 3rd party
  4. Non-resident alien students, unless requested by the student

6. I am an International Student; do I need a 1098T form?

No. If you do not have a working permit and therefore not filing Income Tax Returns.

7. Why isn't there an amount in box 2?

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 year without IRS permission. HCC report payments received for qualified tuition and related expenses (Box 1) and therefore, Box 2 – Amount billed for qualified tuition and related expenses, will be blank.

8. What other information do I need to claim the tax credit?

The 1098-T, as designed and regulated by the IRS, is just a starting point. It does not contain all the information needed to claim a tax credit. Most of the information needed to be able to claim tax credit must come from the student’s personal financial records for the calendar year.

Each taxpayer and his or her tax advisor, if there is any, must make the final determination of qualifying expenses.

9. I paid my qualified tuition and related expenses with student loans. Can I still be eligible for American Opportunity tax credit?

Yes. Loan funds should be considered in the same manner as cash payments.  However, any scholarships, grants, or other non-taxable aid must be deducted from the amount of qualified tuition and related expenses paid. The credit is claimed in the year in which the expenses are paid, not in the year in which the loan is repaid.

10. My address listed on the 1098-T has changed. Will this affect me?

No. The address shown on Form 1098-T is irrelevant for IRS income tax filing purposes. The single most important information on the form is your Social Security Number.

However, if you have not chosen to receive it electronically, it will be mailed to your address on HCC record.  If this has changed, you will not receive it.

11. How do I get a reprint of my 1098-T form?

If you did not receive a 1098-T due to a change of address, or you misplaced the form, you must grant consent to receive it electronically so you can print it online.  Please be advised that HCC will not mail any duplicates.

 

12. How can I get an itemized listing of my financial activity that is on my 1098-T form?

You can review your account on line to determine the details of your payments reported on your 1098T form.