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IRS Tuition Statement, Form 1098-T

The 1098-T, also called Tuition Statement, is an information form Santa Barbara City College files with the Internal Revenue Service.  This form is also supplied to the student to assist you, the taxpayer, in determining if you are eligible to claim any tax credits and/or deductions for educational expenses. Based on the amount of Qualified Tuition and Related Expenses billed by SBCC, less scholarships and grants received, the student may be able to take either the tuition and fees deduction or claim an education credit on Form 1040 or 1040A for the qualified tuition and related expenses that were billed during the calendar year.

Special Note for 2018 Tuition Statements:

In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) Santa Barbara City College 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 payments received for qualified tuition and related expenses paid during the calendar (tax year) 2018. 

Please note the amount in Box 1 will NOT be equal to, or sum to, your charges billed for calendar year 2018 because all charges are not considered qualified tuition and related expenses as defined by the Internal Revenue Service.  Qualified Tuition and related expenses are tuition, fees, and course materials required for a student to be enrolled at, or attend, an eligible educational institution.  Non-qualified tuition and related expenses include charges and fees for room, board, insurance, medical expenses (including student health fees), transportation, and similar personal, living, or family expenses.

Depending on your income (or your family’s income, if you are a dependent), whether you were considered a full or half-time enrolled student, 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 IRS Publication 970, page 9.)

The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863, which is the form used for calculating the education tax credits that a taxpayer may claim as part of their tax return.

Santa Barbara City College is unable to provide you with individual tax advice; we encourage you to seek the counsel of an informed tax preparer, adviser, or the IRS at 1-800-829-1040.

Choosing a Tax Professional 

Below is a blank sample of the 2018 Form 1098-T, that you will receive in January 2019, for your general reference. For more information about Form 1098-T, visit the IRS website for Form 1098-T Instructions.


How to Interpret the 1098-T Statement, Box by Box

Your 1098-T, Tuition Form, will look similar to the image below, containing information such as the School Name, Address and Federal Tax Identification Number, and your Name, Address and Social Security Number: 

2018 - IRS Tuition Statement Example

The following is a breakdown of what each box represents:

BOX 1: Payments Made to SBCC

Historically, this box has been intentionally left blank.  Due to changes in federal regulations, effective calendar year 2018, all institutions will be required to report PAYMENT MADE to the College. 

Please be advised:

  • If you registered for and paid for Spring 2018 classes in 2017, those payments will NOT be included on the 2018 1098-T.
  • If you register and pay for Spring 2019 classes in 2018, those payments will be included on the 2018 1098-T.

The figure in Box 1 shows the total amount of qualified tuition and related expenses that were paid for during the calendar year, less any amounts in scholarships and grants paid towards your qualified tuition, such as the Board of Governor's Fee Waiver, the California College Promise Grant and the SBCC Foundation Promise.

For purposes of the tuition and fees deduction, qualified, or eligible, charges are in-state or out-of-state tuition charges required for a student to be enrolled at or attend SBCC and receive academic credit for the completion of course work.

Qualified Tuition and Related Expenses:

Include

Do Not Include

Resident and Non-resident Tuition

Undergraduate Program Tuition

Undergraduate Differential Tuition

Special Class (Material) Fees

Student Activity Pass Fees

Student Representation

 

Application Fees

Library (and other) Fines

Health Fee

Course Related Books and Equipment

Registration fees paid for non-credit courses

Study Abroad Courses

Transportation Pass

Additionally, the amount shown in Box 1 for qualified tuition and related expenses paid during the calendar year may represent an amount that is different from the amount actually paid during the calendar year. For example, the billed amount of tuition and fees reported in this box may be reduced by the following deductions:

Reported Amount (Total in Box 1) Has Been Reduced By

  • Current year reductions in billed amounts for semesters billed during the calendar year.

For example: a reduction due to withdrawal from classes.  The reductions may or may not have resulted in a refund, depending on whether the billed amounts had been paid prior to the reduction.

  • Payments received and applied to tuition charges from third party sponsors, State-funded grants, and scholarshipsscholarships.

Under section 25A of the Internal Revenue Codes and the associated regulations, a taxpayer may take a tuition and fee deduction or claim an education tax credit only with respect to qualified tuition and related expenses actually paid during the calendar year.  .

BOX 2: Amounts Billed by SBCC

This box will be blank.   

BOX 3: Change in reporting method

SBCC made a change in reporting methods between last calendar year (Jan-Dec 2017) and this calendar year (Jan-Dec 2018).  This box will be checked. No action is necessary on your part.

BOX 4: Adjustments Made for Prior Year

This box will be blank.   

Generally, this box shows any adjustments made to your qualified tuition and related expenses reported on a prior year Form 1098-T. The amount reported in Box 4 represents a reduction in tuition billed during a prior calendar year.  However, since we have made a change in reporting methods from Calendar Year 2017 to Calendar 2018, this box will remain blank.

 

BOX 5: Scholarships or Grants

This box reports the total of scholarships or grants administered and processed by SBCC Financial Aid Department during the calendar year. The amount reported in Box 5 excludes:

  • Student loans, for example subsidized, unsubsidized, PLUS, Perkins, and alternative loans.
  • Work-study.
  • Scholarships, grants, reimbursements or other types of sponsorships not administered or processed by SBCC Financial Aid.

The amount of any scholarships or grants reported for the calendar year and other similar amounts not reported (because they are not administered and processed by SBCC) may reduce the amount of any allowable tuition and fee deduction or education credit that you are entitled to.

Beginning with the 2011 tax year, Veterans Education Benefit amounts received (Post 9/11 GI Bill) will now be included in Box 5. 

 For additional information on Veteran's Education Benefits, please visit either the IRS  or the Department of Veterans Affairs  website.

BOX 6: Adjustment to Scholarships or Grant for a Prior Year

This box shows any adjustments made to scholarships or grants previously reported on a prior year Form 1098-T. The amount reported in Box 6 for adjustments to scholarships or grants may affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. This also may require you to file an amended income tax return (Form 1040X) for the prior year.

 See IRS Form 8863 for how to report these amounts.

BOX 7: Future Semester Bill Included

This box will be checked if Box 1 includes amounts for an academic period beginning in the next calendar year. 

For example: if you registered and paid for the upcoming Spring semester (January - May 2019) during November or December, this box will be marked. 

If you believe the amount reported in Box 1 was incorrect, it may be because the amount was recorded on a prior year.  In this event, that prior year Box 7 would have been checked. 

See Pub. 970 for how to report these amounts.

BOX 8: Enrollment Status

This box shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at SBCC for at least one academic period during the calendar year. If this box is marked, you meet one of the requirements for the

 Hope Tax Credit. You do not have to meet the workload requirement to qualify for the tuition and fee deduction or the lifetime learning credit.

BOX 9: Graduate Level Education

This box will not be checked as the college does not offer any graduate degrees, graduate-level certificates, nor other recognized graduate level educational credentials.   


 

         

 

Take the Quiz!

 

"Am I Eligible to Claim an Education Credit?"

          

The IRS website offers this interactive Tax Assistant to help determine if you're eligible for certain educational credits or deductions including the American Opportunity Credit, the Lifetime Learning Credit, and the Tuition and Fees Deduction. 


Frequently Asked Questions:

How do I obtain my Form 1098-T?

1098-T forms are available on your Pipeline portal.  Santa Barbara City College does not mail 1098-T forms to your home address.  

To access and print your 1098-T Form, please log in to your Pipeline account.  Under the Student tab, select:

  1. Student Resources
  2. Student Account
  3. Tax Notification (1098-T)
  4. Select Year (2017)
  5. Submit
  6. Print
Does every student get a Form 1098-T?

SBCC must file a Form 1098-T for each student enrolled for the given calendar year and for whom a reportable and eligible transaction is made.  However, the IRS does not require the college to provide a Form 1098-T for:

  • Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program
  • Nonresident alien students
Why didn't I receive a Form 1098-T for last year?

Educational institutions are required to secure social security numbers (SSN) or, if you are not eligible to obtain a SSN, your individual taxpayer identification number (ITIN) in order to file certain information returns with the IRS and to furnish a statement to you. The return that Santa Barbara City College is required to file includes information about qualified tuition and related expenses (Form 1098-T Tuition Statement). The information about your tuition will help to determine whether you, or the person who can claim you as a dependent, may take the tuition and fees deduction or claim an education credit to reduce federal income tax.

If you did not provide your SSN as part of your application for admission process, please download the form W-9S - Request for Student’s or Borrower’s Taxpayer Identification Number and Certification. Submit the completed W-9S form to the SBCC Admissions & Records Office, located in the Student Services Building SS-110.  

Here is the link to obtain the W-9S form here. If you have any questions about completing this form or updating your record, please contact the Admissions & Records Office directly at http://www.sbcc.edu/admissions/ or phone (805) 730-4450.

What is the time period the Form 1098-T is reporting?

SBCC reports charges billed to the account within each calendar year, January 1st - December 31st.

For example: The current 1098-T's posted in January 2019 are for the 2018 Calendar year. 

Why do my current Spring semester charges not appear on my Form 1098-T?

Students automatically charge their accounts when registering for classes. If you registered during early registration (typically October or November), your account was charged at that time, making those charges eligible to claim during the calendar year in which they were incurred.

What is the Lifetime Learning Tax Credit?

To review information about this Tax Credit option as a result of the Tax Relief Act of 1997, you may access IRS Publication 970, "Tax Benefits for Education".   

Did you send a copy of this form to the IRS?

Yes. Section 6050S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires institutions to file information returns to assist taxpayers and the Internal Revenue Service in determining eligibility for the American Opportunity and Lifetime Learning education tax credits.  The annual deadline to file the required tax information electronically is March 31, although data may be transmitted earlier. 

Do I actually submit the Form 1098-T with my tax return?

There is no requirement for the 1098-T to be attached along with your tax return. This document may be kept for your personal records.

The IRS Form 1098-T is not like the IRS Form W-2 obtained from your employer, which is required to be attached to the tax return filed with the IRS. The primary purpose of the IRS Form 1098-T is to let you know that SBCC has provided required information to the IRS to assist them in determining who may be eligible to claim the tuition and fee deduction or an education credit.

How are VA Benefits reported on my Form 1098-T form?

Beginning in 2012, VA Benefits received under the Post 9/11 GI Bill are now reported as scholarships on the 1098-T form in Box 5. Although VA benefits are not considered a resource when need is calculated, the IRS has recently defined Box 5 to include payments received from governmental entities. The definition of Box 5 is:

The total amount of any scholarships or grants administered and processed during the calendar year for the payment of the student's costs of attendance. Scholarships and grants generally include all payments received from 3rd parties (excluding family members and loan proceeds). This includes payments received from governmental and private entities such as the Department of Defense, civic, and religious organizations, and nonprofit entities.

For more information you may access https://www.irs.gov/pub/irs-pdf/i1098et.pdf.

I still have questions. Who can I contact?

Any further questions can be directed to a representative in the Cashier's Office via email at: cashiers@sbcc.edu

Notice to Parents, Legal Guardians and Accountants

In previous years, the student’s 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) Santa Barbara City College billed to the student’s account for the calendar (tax) year. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, the District will report in Box 1 the amount of payments received for qualified tuition and related expenses paid during the calendar (tax year) 2018. 

Students will be sent a detailed e-mail of the changes in early January.  This information will also be posted on the website.  Their IRS Tuition Statement (1098T) will be available on their pipeline accounts no later than January 25, 2019. Please understand that 1098T’s will not be mailed.  Questions regarding the content of a student's 1098T must be directed by the student.  No questions can be answered to Parents, Legal Guardians, Accountants or other third party representatives without direct authorization by the student. 


Additional Resources

IRS - Education Credits

Form 8863

Instructions

 

IRS - Individual Tax Return

Form 1040

Instructions

 

IRS - Tuition Statement

Form 1098-T

Instructions 

 

IRS - Report Social Security Number to Educational Institution

Form W-9s

Instructions

 

IRS - Tax Benefits for Education

Publication 970

American Opportunity Credit  

Lifetime Learning Credit

529 Plans: Questions & Answers

529 Plans: Recent Changes

 

Santa Barbara City College is not authorized to offer any personal tax advice. Please address all questions and concerns regarding personal tax matters to a tax consultant/advisor or the IRS directly at 1-800-829-1040.

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