1098T Question

[mariia0417]

If I paid $100.00 dollars for tuition but received $500.00 from financial aid, I was told I will not receive a 1098T from. However, is there any instructions from the IRS or anything that says that I do not qualify for the 1098T form? Thank you.

[DawnC]

If you receive a Form 1098-T, any financial aid received during the tax year will be displayed in Box 5.  Note that if your tuition and fees were entirely covered by financial aid, you may not receive a Form 1098-T.  So, in your example, you may not receive a 1098-T since your aid covered all of your tuition.   You aren't eligible for educational tax credits unless your expenses are more than your tax-free assistance.   

On page 2 of 2020 Instructions for Form 1098-T, it states the following requirements for a school:

File Form 1098-T, Tuition Statement, if you are an eligible educational institution. You must file for each student you enroll and for whom a reportable transaction is made. 

Exceptions - You do not have to file Form 1098-T or furnish a statement for:

• Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program;

• Nonresident alien students, unless requested by the student;

• Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships or grants; and

• Students for whom you do not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement between an institution and the student’s employer or a governmental entity, such as the Department of Veterans Affairs or the Department of Defense.