University of Minnesota
Tax Management Office
tax.umn.edu
612-624-1053

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Educational Tax Benefits Frequently Asked Questions

 

Please note: 1098-T forms are handled by One Stop Student Services. If your question is not answered here, please contact One Stop directly at your campus:

Twin Cities: 612-624-1111 or 1-800-400-8636 or email: onestop@umn.edu or website: onestop.umn.edu
Crookston: 218-281-8569 or 1-800-UMC-MINN or website: www3.crk.umn.edu/onestop/
Duluth: 218-726-8000 or email: umdhelp@d.umn.edu or website: d.umn.edu/onestop/
Morris: 320-589-6046 or 1-800-992-8863 or email: ummonestop@morris.umn.edu or website: onestop.morris.umn.edu/
Rochester: 507-258-8069 or email: umr1stop@r.umn.edu or website: r.umn.edu/onestop/

When are you mailing 1098-T and 1098-E forms?

1098-T forms will be sent via U.S. Mail no later than January 31st. The 1098-T forms are mailed by the University of Minnesota. Your student loan servicers will mail the 1098-E forms to you directly.

What address is the 1098-T form mailed to?

The 1098-T form is mailed to the home/permanent address listed on your University of Minnesota student record. To check this address, go to your campus One Stop and click on the Personal Information quick link. If there is no home/permanent address on your student record, the 1098-T is mailed to your current mailing address listed on the Personal Information quick link.

What is a 1098-T?

The information on the 1098-T form is being provided to assist the student with filing for the education tax benefits/tax credit deductions, such as the Lifetime Learning Tax Credit, Hope Scholarship Tax Credit, or the Above-the-Line Tax Deduction for Qualified Higher Education Expenses. See the IRS web site at irs.gov/pub/irs-pdf/p970.pdf for more information.

Why did I get a 1098-T form?

The University of Minnesota is required to send a 1098-T form to any student that was enrolled and had qualified tuition billed during the previous calendar year.

Why didn't I get a 1098-T form?  

There are several reasons why a 1098-T form may not be generated or received:

  • If you received more scholarships and/or grants than the amount of qualified tuition and fees billed.
  • If you are classified as a Non Resident Alien on the University of Minnesota’s student record database.
  • If you didn’t provide us with your Social Security Number (SSN). If you provide your SSN to your campus One Stop they can send a 1098-T form to you.
  • If your 1098-T form was sent to an old or incorrect address. If you provide your current mailing address to your campus One Stop, they can resend a 1098-T form to you.

What are qualified charges?

Qualified charges include tuition and fees a student is required to pay “out-of-pocket” in order to be enrolled at or attend the University of Minnesota. Amounts paid for any course or other education involving sports, games, or hobbies are not eligible for the credit unless the course or other education is part of the student’s degree program. Charges and fees associated with room, board, student activities, athletics, insurance, transportation, and similar personal, living, or family expenses are not qualified.

Qualified expenses paid with student’s earnings, a loan, gift, inheritance, or personal savings are included; however, expenses paid with a Pell Grant, other tax-free scholarship, tax-free distribution from Education IRA, or tax-free employer provided educational assistance are not counted. You can find additional information at irs.gov/pub/irs-pdf/p970.pdf.

What changes in qualified education expenses are related to the American

Opportunity Tax Credit?

Under the American Opportunity Tax Credit congress has modified the definition of expenses that qualify for the credit.  The term "qualified tuition and related expenses" has been expanded to include expenditures for "course materials." For this purpose, the term "course materials" means books, supplies and equipment needed for a course of study whether or not the materials are purchased from the educational institution as a condition of enrollment or attendance.

Why do you list ‘amounts billed for qualified tuition’ (Box 2) rather than ‘payments received for qualified tuition’ (Box 1)?

An institution may choose to report either payments received (box 1) or amounts billed (box 2) for qualified education expenses. The University reports amounts billed for qualified tuition (box 2); however, the amount in box 2 of Form 1098-T may be different than what you actually paid. When figuring for education tax benefits purposes, use only the amounts you paid out-of-pocket in that tax year.

What box on the 1098-T form should I use for my taxes?

Only amounts billed by the University are on the 1098-T form. Whenever a student (or parents) want to claim the tax credit for educational expenses or any other tax benefits relating to higher education – they must determine the amount of tuition actually paid – NOT BILLED. Furthermore, any related qualified expenses for the American Opportunity Tax Credit need to be determined from records kept by the taxpayer. The University does not track these type of expenses on the 1098-T. Please contact the IRS or your personal tax preparer for assistance or review the information at irs.gov/pub/irs-pdf/p970.pdf.

Are the 1098-T forms available electronically?

1098-T forms are not available electronically yet; however, students can view their tuition and related fees assessed at your campus One Stop and then click on the Student Account quick link. Use the ‘Transactions by Date’ link at the top to sort and display all financial transactions by date for the calendar year.

Can I get a duplicate copy of my 1098-T form for prior years?

Yes. Contact your campus One Stop for a reprint or duplicate copy for prior calendar years.

Can you give me the amount of qualified tuition billed over the phone?

Yes, if you were eligible to receive a 1098-T form. Contact your campus One Stop for this information.

Will I still get a 1098-T when I haven't paid my tuition and fee charges for that tax year?

You will be sent a 1098-T since you have qualified tuition and fees that were billed; however, you will not be able to claim an education tax benefit for the previous tax year since the charges were not paid.

Can a student and a parent both qualify for the tax credit?

No. Only one tax filer can claim the education tax benefit; however, if both the student and the parent are students and have qualified charges paid, then both may be eligible for education tax benefits. Please contact the IRS or your personal tax preparer if you have further questions.

Can you mail my 1098-T to my parents for me?

If you would like your parents to receive a copy of your 1098-T form, please photocopy your 1098-T and mail it to them directly. If you’ve misplaced your copy of the 1098-T, please contact your campus One Stop for a duplicate copy.

Can you fax my 1098-T form directly to my tax preparer?

Faxing 1098-T forms directly to tax preparers is not a service the University of Minnesota offers.

Who do I contact if there is an error on my 1098-T?

Please read all of the information available here. If you still feel there is an error, please contact your campus One Stop for assistance.

What if my Social Security Number is incorrect on the 1098-T?

Please contact your campus One Stop for assistance. You will be asked to produce a copy of your social security card as verification.

I purchased books and a computer at the University bookstore. Why are these charges not showing on my 1098-T?

Generally, these items are not tracked within the student finance system of the University. Each student must keep track of their qualified charges (books, required equipment) on their own. Please contact the IRS or your personal tax preparer for assistance or review the information at irs.gov/pub/irs-pdf/p970.pdf.

Why doesn’t the student health insurance fee count as qualified charges on my 1098-T since it is a mandatory fee?

Charges and fees associated with room, board, student activities, athletics, insurance, non-required equipment, transportation, and similar personal, living, or family expenses are not qualified charges.

Does study abroad tuition count as qualified charges on my 1098-T?

The tuition and fees portion of the student abroad program fee is deemed as qualified tuition for the purposes of determining education tax credits; however, personal expenses and fees for costs such as room and board, insurance, medical expenses, transportation and similar living or family expenses are excluded from the definition of “tuition and related expense”.

My student is a high school student (i.e., Post Secondary Education Option, College in the Schools). Why did my student get a 1098-T form?

If your student had more qualified charges (Box 2) than they had in scholarships and grants (Box 5), the University of Minnesota is required to send the 1098-T form. High school students are not precluded from these tax benefits.

I’m an international student. Will I be sent a 1098-T?

If you are classified as a Non Resident Alien as defined by the IRS and are coded as such in the University of Minnesota student records system, you will not be sent a 1098-T form. Please contact the IRS or your personal tax preparer for assistance.

I'm an active graduate/professional student working on my thesis credits and registered for GRAD 0999. Why didn't I get a 1098-T so that I can claim that I'm a student on my taxes?

A 1098-T form is not meant to give student status certification. If you were not billed for qualified tuition and fees or those qualified charges were less than the scholarships/grants you received, you will not be sent a 1098-T form.

Does any of the information on the 1098-T correlate to any amounts I can claim on my tax return?

Not necessarily! Only amounts billed by the University are on the 1098-T form. Whenever a student (or parents) want to claim the tax credit for educational expenses or any other tax benefits relating to higher education – they must determine the amount of tuition actually paid – NOT BILLED. Furthermore, any related qualified expenses for the American Opportunity Tax Credit need to be determined from records kept by the taxpayer. The University does not track these type of expenses on the 1098-T.

Box #5 of the 1098-T constitutes scholarships which are considered to be taxable income to the extent Box #5 exceeds the actual amounts PAID for tuition, books, required course fees, and required equipment. The taxpayer will need to figure the correct amount from their own records.

Please contact the IRS or your personal tax preparer for assistance or review the information at irs.gov/pub/irs-pdf/p970.pdf.