There are a number of tax benefits and credits offered by the federal government to college students, including the 1098-T.
The 1098-T form is a Tuition Payment Statement that includes information that colleges and universities are required to issue for determining a student's eligibility for education tax credits.
The 1098-T form issued by the University of Massachusetts reports the amount received over the course of the previous calendar year, provided you were enrolled in classes during that year. This form will assist you or whomever may claim you as a dependent when preparing your federal income tax return.
CARES Act (also known as the HEERF Grant)
The CARES Act money as well as the HEERF grants will not be reported on the 1098-T. These funds cannot be used to apply for educational tax credits or deductions. For more information as well as IRS guidance on this matter refer to the Student Tax and Compliance Information page.
To submit or correct your taxpayer identification number, use the Taxpayer ID Number Form W9S. Print, complete and submit to the Student Financial Services Office.
Note: Receipt of a 1098-T does not mean you automatically qualify for a tax credit.
Prior to the release of the IRS 2019 1098-T instructions, schools were able to report either amounts actually paid or received in Box 1 or amounts billed in Box 2 (but not in both). The IRS issued new guidance that requires schools to use only Box 1.
Institutions may no longer report amounts billed in Box 2 for tax year 2018 (forms filed in 2019) and beyond.
Your accountant, tax preparer or the IRS can best advise you how to use this form when preparing your taxes.
For further descriptions of box numbers, see IRS Specific Instructions.