While we pride ourselves on providing our students and families the highest caliber of customer services, we are by not trained tax professionals and cannot provide any tax advice. Listed below is general tax information, as well as resources to help guide you in the right direction. We strongly encourage you to consult with a tax professions for any additional questions or concerns you may have.
We provide all students with a 1098-T form to assist in filing for education tax benefits/tax credit deductions, such as the Lifetime Learning Tax Credit and Hope Scholarship Tax Credit for Qualified Higher Education Expenses. You can find the 1098-T form by viewing the "1098T Tax Form" tab at the top of your My Finances pages. All 1098-T forms will be available by end of day on January 30th of each year. Please note that we no longer send this information via postal mail.
The 1098-T (along with the 1098-T Detail) provides tax information necessary to determine eligibility for the Hope credit and the lifetime learning credit. The Taxpayer Relief Act of 1997 (TRA97) created these two tax credits for students and their families.
Hope credit - provides up to $1,500 per student for qualified tuition and related expenses for the first two years of postsecondary education. To be eligible, students must be enrolled at least half-time in a degree- or certificate-granting program.
Lifetime learning credit - is more broadly applicable to any postsecondary education to acquire or improve job skills. It provides a credit equal to 20 percent of qualified expenses of no more than $10,000 per taxpayer (family).
For more details on the potential benefits of these tax credits, seek the advice of a qualified tax professional, or refer to the IRS websites at http://www.irs.gov/publications/p970/ch02.html and http://www.irs.gov/publications/p970/ch03.html.
The boxes contain the totals of your annual qualified tuition and fees. Box descriptions can be found at bottom of the 1098-T itself, and additional information and descriptions can be found on the IRS website, keyword "1098-T"
* * For 1098-T purposes University of Delaware reports amounts when billed and NOT when paid, received, or posted. For this reason Box 1, Box 3 and Box 10 are not used by the University of Delaware. * *
This is the most common misunderstanding each year. For 1098-T purposes, the University of Delaware reports qualified tuition and related expenses in the calendar year when they were billed and not when amounts were paid, received or posted. For example, undergraduate students were billed for Spring 2011 semester charges in mid-December of 2011. Only charges that post in 2011 will appear on this 1098T statement. You can view your activity online through My Finances at www.udel.edu/paybill to see all charges posted in the tax-year 2011.
Amounts of qualified tuition and required fees reported on your 1098-T are defined by the IRS as "tuition and fees required for enrollment or attendance at an eligible educational institution". The IRS does not consider student health fees, transportation fees, insurance fees, or room and board of any kind* as qualified tuition and related fees, therefore, these fees are excluded from amounts reported on the 1098-T.
*Because the Study Abroad Fee includes room and board, this disqualifies the entire amount from 1098-T reporting.
Amounts of scholarships reported on your 1098-T are for determining eligibility for the Hope credit and lifetime learning credit only, NOT for determining taxability of such scholarships. Your scholarships may or may not be taxable, refer to IRS Publication 970 for details on determining the taxability of different types of scholarships.
The University of Delaware is prohibited from giving tax advice, or guidance on tax determinations or calculations, and from disclosing any student information over the telephone or to anyone other than the student themselves. We offer as much information as possible and include informative resources and references where available. Other resources such as browsing the IRS website, which is easy to navigate, and seeking the advice from a qualified tax professional are recommended if you have questions about your specific reporting.
Account number - May show an account or other unique number the filer assigned to distinguish your account.
Box 1 - Shows the total payments received from any source for qualified tuition and related expenses less any related reimbursements or refunds.
Box 2 - Shows the total amounts billed for qualified tuition and related expenses less any related reductions in charges.
Box 3 - Shows whether your institution changed its method of reporting from the prior year. The University of Delaware has consistently reported amounts billed year to year so this will not be relevant at this time.
Box 4 - Shows any adjustment made for a prior year for qualified tuition and related expenses that were reported on a prior year Form 1098-T. This amount may reduce any allowable education credit that you claimed for the prior year. See "recapture" in the index to Pub. 970 to report a reduction in your education credit or tuition and fees deduction.
Box 5 - Shows the total of all scholarships or grants administered and processed by the eligible educational institution. The amount of scholarships or grants for the calendar year (including those not reported by the institution) may reduce the amount of the education credit you claim for the year.
Box 6 - Shows adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. You may have to file an amended income tax return (Form 1040X) for the prior year.
Box 7 - Shows whether the amount in box 1 or 2 includes amounts for an academic period beginning January-March 20XX (XX representing the year following the tax year). See Pub. 970 for how to report these amounts
Box 8 - Shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at the reporting institution. 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 lifetime learning credit.
Box 9 - Shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential. If you are enrolled in a graduate program, you are not eligible for the Hope credit, but you may qualify for the lifetime learning credit.
Box 10 - Shows the total amount of reimbursements or refunds of qualified tuition and related expenses made by an insurer. The amount of reimbursements or refunds for the calendar year may reduce the amount of any education credit you can claim for the year.