1098-T Tax Form Information
The University of Arkansas Fort Smith’s sole responsibility regarding the American Opportunity Credit and Lifetime Learning tax credits is to furnish Form 1098-T to students incurring tuition and related expenses. UAFS is not responsible for, and is prohibited by law, from giving tax advice. Taxpayers should contact their tax advisor or the Internal Revenue Service for guidance.
The 2018 1098-T forms will be mailed to the student’s address of record by January 31, 2019.
The 1098-T contains the amount you paid toward qualified tuition and related expenses to the University during the calendar year. It also displays the amount of any scholarships or grants received by the student during the calendar year. Qualified tuition and related expenses (QTRE) are defined by the IRS as ‘tuition and fees required for enrollment or attendance.’ In general, not all charges incurred during a calendar year will meet IRS requirements—which is why the figure in Box 1 will probably not match the total amount you paid for the calendar year. Qualified tuition and related expenses does not include room, board, insurance, transportation, and similar personal, living, or family expenses.
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 in 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.
The effect of this change will result in the 2018 1098-T reflecting all payments we received on your account related to 2018 QTRE, if those payments were received between January 1, 2018 and December 31, 2018. Any payments associated with spring 2018 charges that were paid prior to January 1, 2018 will not be reflected on your 2018 1098-T.
Many students who did not receive a 1098-T tax form in the past may receive one this year. Universities have always been given the choice to send, or not send, a 1098-T to students whose scholarships and grants exceed their qualified tuition and related expenses (QTRE). In the past, UAFS has excluded these students from 1098-T reporting. However, beginning with 2018, we will begin reporting on all students, even if their total charges were paid with scholarships or grants.
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 IRS Publication 970, 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.
Please note, you should always consult your tax advisor with any questions regarding these changes and the University of Arkansas Fort Smith is in no way providing tax advice or tax planning assistance.