***In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses 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 qualified tuition and related expenses you paid during the year.***
The 2018 1098-T tax form will be mailed out and/or available online by January 31, 2019. Please check back to our website for updated information. Students have access to a copy of their prior year 1098-T forms online through their Student Service Center. Under the Student Center tab, on the lower right-hand side of the page, click on View 1098-T in the Student Finances box. From there, additional details can be viewed by clicking on the Box Amounts tab. You can view step-by-step details of How To View 1098-T online. If forms do not come up, check your Pop-Up Blocker setting and allow pop-ups for our web pages.
As an eligible educational institution, Illinois State University is required to file Form 1098-T for each student who is enrolled in either semester of each tax year. Please consult IRS Publication 970 (Tax Benefits for Education), Form 8863 (Education Credits) and the Form 1040 or 1040A for more details.
|Box Number||Information Reported in Box|
|Box 1||Payments received from any source for qualified tuition and related expenses less any related reimbursements or refunds (Shown in tax year 2018 and forward)|
|Box 2||Amount billed during the calendar year for qualified tuition and related expenses less health service fees and student insurance charges. (Shown in tax year 2017 and prior)|
|Box 3||This box is checked for tax year 2018 to reflect the change in reporting method from Box 2 to Box 1.|
|Box 4||Adjustments in qualified tuition and related expenses that were previously reported on a 1098-T.|
|Box 5||Scholarships or grants processed during the calendar year for the payment of the student's cost of attendance.|
|Box 6||Adjustments to the amount of scholarships and grants that were previously reported on a 1098-T.|
|Box 7||If this box is checked, the amount in box 2 includes amounts for a future academic period beginning January - March of the following year.|
|Box 8||If this box is checked, the student was at least half-time during any academic period that began in the reported year.|
|Box 9||If this box is checked, the student was a Graduate student during spring, summer, or fall semesters of the reported year.|
Qualified expenses include tuition, fees (except Health Services and Student Insurance), required books, supplies, and equipment.
The following expenses are NOT considered as qualified expenses:
Fees and charges for housing, student insurance, student health services, transportation, or other personal, living, or family expenses. Fees and charges for any course or educational activity involving sports, games, or hobbies unless the course or educational activity is part of the student's degree program or helps the student acquire or enhance career-related professional skills.
There are two educational tax credits available to help offset the cost of higher education: The American Opportunity Tax Credit and the Lifetime Learning Credit. The American Opportunity Tax Credit is available for the first four years of higher education for a maximum credit of $2,500.00 per eligible student. The Lifetime Learning Credit has no limit on the number of years it can be claimed, and is worth up to $2,000.00 per tax return. If a student is eligible for both credits, either credit can be chosen but not both.
Please visit the Internal Revenue Service web site or call (800) TAX-1040 or (800) TAX-FORM for more information. You should discuss any potential tax implications with your tax advisor.