1098-T’s Frequently Asked Questions
In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) we billed to your student account for the calendar (tax) year. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, we will report in Box 1 the amount of QTRE you paid during the year.
Depending on your income (or your family’s income, if you are a dependent), whether you were considered full or half-time enrolled, and the amount of your qualified educational expenses for the year, you may be eligible for a federal education tax credit. (You can find detailed information about claiming education tax credits in the following link https://www.irs.gov/pub/irs-pdf/p970.pdf, page 9.)
The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863 – the form used for calculating the education tax credits that a taxpayer may claim as part of your tax return.
Wake Technical Community College is unable to provide you with individual tax advice, but should you have questions, you should seek the counsel of an informed tax preparer or adviser.
Form 1098-T Tuition Statement is used to report information to the IRS as required by the Taxpayer Relief Act of 1997. The form helps you and the IRS determine your eligibility to claim certain tax credits (e.g. Hope, Lifetime Learning). See IRS Publication 970, “Tax Benefits for Education” for more information (www.irs.gov). WTCC is required to send the 1098-T to students by January 31st each year summarizing qualified tuition and fees billed during the previous year.
Wake Tech is required to issue a 1098-T to eligible students by January 31st of each year. If you have consented to receive an electronic version on Self-Service, you will go to Self-Service to access and print your 1098-T. If you did not consent to receive an electronic version, your 1098-T will be mailed to you by January 31st to the address we have on file as of mid-January.
In Self-Service, under Tax Information, 1098-T Electronic Consent. Select the electronic consent option.
- Have you consented to receive an electronic version? If so, or if you are not sure, go to Self-Service 1098-Ts to see if you have a statement for the current tax year. If there is a statement on Self-Service and you have consented to receive it electronically, you will not receive a 1098-T in the mail.
- Do we have a current address on file for you? You can check (and change) your address through WebAdvisor; please update it if it is not current. To view and print your 1098-T, go to Self-Service and consent to receive the electronic version. If the mailing address was the problem, you should now be able to see your 1098-T.
If your social security number (SSN) does not appear on the 1098-T or is incorrect, it is because we do not have the information in our system. You are required by the IRS to provide your SSN so that we can include it on your 1098-T. If you fail to provide your SSN to the college, you may be subject to a fine by the IRS. You can correct this by completing a W-9S form https://www.irs.gov/pub/irs-pdf/fw9.pdf and returning it in person to the Cashier’s Office in Montague Hall, Room 110, on the Southern Wake Campus, or by mail to:
Wake Technical Community College
Attn: Financial Services
9101 Fayetteville Road
Raleigh NC 27603
Once we update your SSN in our system you should be able to view a corrected 1098-T in Self-Service. We are required to send the 1098-T information to the IRS by March 31st. We will continue updating SSN information until we send the file to the IRS.
Beginning in 2018, the IRS has required that we report in Box 1 “Payments Received”. Prior to 2018, we reported on Box 2 “Amounts Billed”.
No. The IRS requires colleges and universities to report total qualified tuition and related expenses (QTRE) “payments received” in Box 1.
The amount in Box 1 is the result of complex calculations performed by our general ledger software and may not correspond to your actual payments to be reported on your tax return. For these reasons, students are required to maintain their own proof of payment records such as receipts, check copies and bank/credit card statements. You may print your statements by semester in Self-Service, which will detail dates payments were made by semester. Please contact your tax advisor or the IRS for more information.
Please refer to IRS Publication 970 page 2, which states:
When figuring an education credit, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses. In most cases, the student should receive Form 1098-T from the eligible educational institution by January 31st. However, the amounts on Form 1098-T, [box 1], might be different than the amount you actually paid and are deemed to have paid”.
Hence, the amount reported in box 1 is not used to validate or reconcile the amount reported on a taxpayer form. It is up to the taxpayer to determine using their records what in fact, they did pay in qualified expenses.
Box 1 includes total qualified amounts paid. For purposes of 1098-T reporting, some fees are excluded from this amount. Specifically, the Campus Access Fee is not included. Also, Box 1 is based on the amounts paid from all sources (including Financial Aid) and limited to the invoice amounts for the year. You will need to consult your tax advisor or the IRS to determine what expenses are reportable on your tax return.
We do not include books on the 1098-T unless they are charged as part of a course fee (i.e. supply fee). We only include tuition and fees paid to the College. Please consult your tax advisor to determine if books are a deductible expense for tax purposes.
Box 5 shows the amount of scholarships and grants the student received. Box 5 does not include loans. Scholarships and grants reduce the amount of qualified expenses the student can use when calculating a deduction or credit.
Please keep in mind this is an “information” return. The amount included in Box 1 is not necessarily the amount you report for tax purposes. Most questions will need to be answered by your tax adviser. If you need more details on how your amount was calculated, we can provide more details, but we cannot change your 1098-T to agree to your records. Our system uses a formula to calculate the amount in Box 1 based on the amounts recorded in our system. We cannot change the formula it is programmed by a third party.
For specific questions about your 1098-T form:
1098-T Help Line
Email: [email protected]
For questions about what to report on your tax forms:
Contact www.irs.gov or your tax adviser