A variety of tax incentives exist for families who are saving for, or are already paying for college, or who are repaying student loans. It is the taxpayer’s responsibility to determine eligibility for any tax credits. Visit the IRS Tax Benefits for Education Information Center for more information.
What We Report on the 1098-T Form
We report amounts paid (Box 1) instead of amounts billed (Box 2). To help the student and the IRS determine if the student qualifies for tax credits, we are required to indicate whether the student was enrolled at least half time for one semester during the calendar year. The IRS also requires the university to indicate if the student was enrolled exclusively in graduate level courses. If this indicator is marked, it could mean the student is not eligible for the American Opportunity Credit. For more information, please consult a tax advisor.
For details, see 1098-T Boxes Explained and FAQs.