Office of the Bursar

1098-T Frequently Asked Questions

We cannot stress enough the importance of reviewing the IRS website and IRS Publication 970 or seeking counsel from a tax professional for advice. Saint Xavier University cannot provide tax advice.

Changes in Reporting Method Effective Tax Reporting Year 2018

Prior to Tax Reporting Year 2018, the Internal Revenue Service (IRS) permitted colleges and universities to choose between two methods of reporting Qualified Tuition and Related Expenses (QTREs) to students on the Form 1098-T. Like most universities, Saint Xavier chose to report QTREs in Box 2 (Amounts Billed for QTREs) rather than box 1 (Payments Received for QTREs).

New legislation now requires colleges and universities to convert, no later than tax year ending December 31, 2018, to reporting payments received for QTREs in Box 1 of the 1098-T form rather than reporting the charges billed in Box 2.

Potential Impact of the Reporting Change: Spring 2018 Term Considerations

The impact of this change for the tax year ending December 31, 2018, is that the amount reported in Box 1 may or may not include your Spring 2018 payments if they were paid in the year that ended December 2017.

For the tax year ending December 31, 2017, Saint Xavier University reported QTREs billed in Box 2. Due to the change in reporting method for 2018, there may be payments reported in Box 1 for the 2018 calendar year that you previously claimed on your 2017 Income Tax Return.

What this means is that when you file your 2018 tax returns and are reviewing payments paid for QTREs in calendar year 2018, pay particular attention to any payments made for the spring 2018 term. Payments that you paid in 2017 you may already have included on your 2017 Tax Return.

What is a 1098-T?

The purpose of the 1098-T is to help you and/or your tax professional determine if you are eligible for the American Opportunity Credit or the Lifetime Learning Credit. The 1098-T is informational; you are not required to attach IRS Form 1098-T to your tax return. Note that most foreign students or nonresident aliens for tax purposes do not need Form 1098-T for any purpose.

Claiming the Education Credits on Your Individual Tax Return

You should use the information on the Form 1098-T in conjunction with your own payment records to complete your individual tax return. If you have questions about how to compute an education tax credit, consult your tax professional or refer to the IRS Publication 970.

Frequently Asked Questions

Below are frequently asked questions (FAQs) about the 1098-T form.

What are QTREs?

QTRE stands for Qualified Tuition and Related Expenses. Generally, QTREs include tuition and mandatory fee charges. For 1098-T purposes, only those QTRE charges that relate to the academic terms that occur during the calendar months January through December are reportable in any given reporting year. QTREs do not include housing, meal plans, transportation or insurance charges. To learn more about QTREs, please refer to the IRS website.

Why is box 2 blank this year?

Prior to Tax Reporting year 2018, colleges and universities had the option to report either the Amounts Billed Method for reporting Qualified Tuition and Related Expenses (QTREs) or the Payments Received Method for reporting payments paid toward Qualified Tuition and Related Expenses (QTREs).

Prior to tax reporting year 2018, Saint Xavier University reported using the Amounts Billed Method.

Beginning with Tax Reporting year 2018, changes to the IRS regulations now require that colleges and universities report only the Payments Received Method of reporting information on Qualified Tuition and Related Expenses (QTREs).

What is included in Box 1 now? What is a 'payment'?

Payments include any credits that are applied to your student account posted during the calendar year that paid for Qualified Tuition and Related Expenses (QTREs). These include cash, check, wire, credit card payments as well as any loans, scholarships, and grants.

These amounts would be reduced by any reimbursements or refunds made during the reporting calendar year that relate to those payments received during that reporting year.

What is included in Box 5 now?

Nothing has changed for calendar year 2018 for Box 5 due to the IRS reporting changes. This box still contains the sum of all scholarships SXU 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 discounts and payments received from third parties that are applied to student accounts for educational expenses are included in this box.

Has the look of the form changed for Tax Reporting Year 2018?

Not really. The only significant change is that Box 2 no longer has a description.

Sample 1098-T Form

When will I receive my 1098-T?

By January 31, 1098-T forms are mailed to qualifying students' permanent addresses on file with the University.

Consent to View My 1098-T

You can securely electronically access a copy of your Form 1098-T anytime on mySXU. If students have trouble accessing their 1098-T, they can call 773-298-3046.

I did not receive a 1098-T. Why Not?

There are several possibilities:

  1. You did not make any payments in the reporting calendar year that were applied to Qualified Tuition and Related Expenses (QTREs).
  2. The IRS does not require SXU to send you one if your total scholarship and grants (Box 5) is greater than or equal to the total payments received (Box 1).
  3. We do not have a valid permanent address on file for you. You are classified as a non-resident alien.

What if my 1098T does not have a social on it?

The single most important information on the form is your Social Security Number.

You must submit a written request to change or correct your SSN by mail or in person to the Registrar's Office. You may be required to supply a signed, legible copy of your Social Security card or complete Form W-9S (Request for Student's or Borrower's Taxpayer Identification Number and Certification). Form W-9S is the official IRS form used to state your SSN. You need only complete Part I of this form when requesting a 1098-T. Enter your SSN in the spaces marked "Taxpayer identification number."

How to Read a 1098-T

Sample Reproduction of Form 1098-T for Calendar Year 2018

Sample 1098-T Form

Note: The Service Provider/Acct. No. box in the lower left corner of the 1098-T form provides the SXU student identification number.

The student's name and address are the name and PERMANENT active address in mySXU at the time the form was generated.

Box 1: Payments Received for Qualified Tuition and Related Expenses

Box 1 payments include any credits that are applied to your student account posted during the calendar that paid for Qualified Tuition and Related Expenses (QTREs). These include cash, check, wire, credit card payments as well as any loans, scholarships and grants.

The QTREs that are paid are typically those related to the academic terms that occur between January and December of the reporting year.

These amounts would be reduced by any reimbursements or refunds made during the reporting calendar year that relate to those payments received during that reporting year.

Box 2

This box will be blank beginning with tax reporting year 2018.

Beginning with Tax Reporting year 2018, changes to the IRS regulations now require that college and universities report only the Payments Received Method of reporting information on Qualified Tuition and Related Expenses (QTREs). We will no longer be reporting amounts billed for qualified tuition and related expenses.

Box 3: Has your institution changed its reporting method in 2018?

In reporting years prior to 2018, since Saint Xavier University reported Amounts Billed and the IRS now requires that effective for reporting year 2018 that the reporting method for all schools report Payments Received, this box will be checked

Box 4: Adjustments Made for a Prior Year

The amount in this box should be the sum of all reductions/adjustments in QTREs 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.

This is the case even though our reporting method has changed from Amounts Billed to Payments Received.

Box 5: Scholarships or Grants

This box contains the sum of all scholarships SXU 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 in the amount that was reported on a prior year 1098-T.

Box 7

This box will be checked if the amount reported in Box 1 includes Payments Received and posted to a student account in the current year that pay for a semester beginning in the next calendar year. For example, payments received in December 2017 for the Spring 2018 Academic term will be reported on a 2018 1098-T.

Box 7 will be checked to indicate that this is the case.