1098-T Tax Information
What is a 1098-T?
The 1098-T form reports the amount billed to you by Loyola University Chicago over the course of the previous calendar year. The purpose of the 1098-T is to help you and/or your tax professional determine if you are eligible for the Hope Scholarship Credit or the Lifetime Learning Credit. The 1098-T is just informational; you are not required to attach IRS Form 1098-T to your tax return.
How to Read a 1098-T:
The Service Provider/Acct. No. box in the lower left corner of the 1098-T form provides the LUC student identification number.
Box 1: Payments received for qualified tuition and related expenses
This box will be left blank on all Loyola University Chicago 1098-T forms. Universities may choose whether to report payments received or amounts billed on student accounts; they are not required to report both amounts. LUC has chosen to report qualified tuition and related expense amounts billed.
Box 2: Amounts billed for qualified tuition and related expenses
In general, this box will contain the sum of all tuition, course fees, and activity fees billed to a student’s account during a calendar year, less any amounts by which tuition was reduced due to a reduction in course load or withdrawal. Decreases in amounts due on a student’s account due to scholarship payments, student payments or other payments are not included in the Box 2 amount.
Amounts billed to a student account for housing, meal plans, parking, health insurance, CTA U-Passes, Rambler Bucks, or other non-required fees will not be included in the Box 2 amount.
Please note that when the Hope Scholarship or Lifetime Learning Credit is taken on the federal income tax return, the calculation of the credit is based on the amount of qualified educational expenses actually paid by the taxpayer during the calendar year. The University reports amounts billed to a student’s account. Therefore, the amount you use to calculate your education credit will not necessarily be the same as the amount that appears in Box 2. Also, see Box 7 and the for additional information about amounts billed in this calendar year for a semester in the next year.
Box 3:
This box will be left blank, since LUC has not changed its current method of reporting from the previous year.
Box 4: Adjustments made for a prior year
The amount in this box should be the sum of all reductions in tuition (refunded or not) related to amounts billed in a prior year. This amount is reported as a positive number per IRS requirements. However, it is actually a decrease to the amount that was reported on a prior year 1098-T.
Box 5: Scholarships or grants
This box contains the sum of all scholarships LUC administered and processed for the student’s account during the calendar year. Scholarships that pay for tuition (qualified scholarships) as well as for housing, books, and other expenses (non-qualified scholarships) will be included in this amount. Tuition waivers and payments received from third parties that are applied to student accounts for educational expenses are included in this box.
Box 6: Adjustments to scholarships or grants for a prior year
Decreases or refunds of scholarship amounts related to scholarships reported in a previous year are included in this box. This amount is reported as a positive number per IRS requirements. However, it is actually a decrease to the amount that was reported on a prior year 1098-T.
Box 7:
This box will be checked if the amount reported in Box 2 includes tuition or qualified amounts billed to a student account in the current year that pay for a semester beginning in the next calendar year. For example, tuition billed in December 2007 for Spring 2008 will be reported on your 2007 1098-T. Box 7 will be checked to indicate that this is the case.
Box 8:
A check in this box indicates that you are or have been enrolled at LUC at least half-time for at least one semester during the calendar year.
If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the Hope credit. You do not have to meet the workload requirement to qualify for the tuition and fees deduction for the Lifetime Learning credit.
Box 9:
This box will be checked if you are a student enrolled in a program leading to a graduate-level degree. If you are enrolled in a graduate program, you are not eligible for the Hope credit, but you may qualify for the tuition and fees deduction or the Lifetime Learning Credit.
Box 10:
This box is not used by LUC, so it will be blank. It shows the total amount of reimbursements or refunds of qualified tuition and related expenses made by an insurer.
Frequently Asked Questions
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What are the Hope and Lifetime Learning tax credits?
In 1997, the Taxpayer Relief Act established two education tax credits and a deduction for student loan interest. These credits are explained in detail in Publication 970 from the IRS. Note: Just because you receive a 1098-T does not automatically mean you qualify for a credit. If you have questions about how to compute your education tax credit, you should consult your tax professional or refer to the IRS.
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When Will I Receive My 1098-T?
1098-T forms will be mailed by January 31 to qualifying students’ permanent addresses. To update or verify your permanent address on file with the University, go to LOCUS and Personal Portfolio.
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Why Didn’t I Receive a 1098-T?
There are several possibilities:
1) You attended LUC in Spring 2007 but you had enrolled and been billed in the calendar year 2006, meaning the information was included in last year’s 1098-T.
2) The IRS does not require LUC to send you one if your scholarship and aid exceeded the billed amount.
3) We do not have a valid permanent address on file for you. To update your address, go under the Personal Portfolio section of LOCUS.
4) You are classified as a non-resident alien.
Please allow until February 18th before requesting a duplicate 1098-T.
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How Do I Find the Amount I Paid in 2007?
Since this information does not appear on your 1098-T, you should reference your Account Summary pages for all terms in LOCUS to find records of payments. You may also need to reference canceled checks, bank statements, or credit card statements to find these records.
Resources
If you have questions about how to compute your education tax credit, you should consult your tax professional or refer to the IRS. Loyola University Chicago is not able to provide tax advice, but the following are links to further information on 1098-T forms and tax credits:
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IRS Website: http://www.irs.gov/
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IRS Publication 970 – Information on the Hope Scholarship Credit and Lifetime Learning Credit: http://www.irs.gov/pub/irs-pdf/p970.pdf
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IRS Form 8863, Education Credits (Hope and Lifetime Learning Credits): http://www.irs.gov/pub/irs-pdf/f8863.pdf
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IRS Telephone Assistance Hotline: 800-829-1040