Ibrahim Gardner
Form 1098-T is a tax document that reports payments received for qualified tuition and related expenses for the tax year ending on December 31 of the preceding calendar year. Eligible educational institutions must file a Form 1098-T for each student they enrol who is a U.S. citizen or permanent resident and is working toward a post-secondary degree. The form is used to determine eligibility for income tax credits based on educational expenses. However, international students who are non-resident aliens are generally not eligible for these tax credits and do not receive a Form 1098-T. While some international students may not need to file tax returns, those in the U.S. on certain visa types may be required to file specific forms, and their tax affairs can impact future visa applications.
| Characteristics | Values |
|---|---|
| Who needs to file Form 1098-T? | US nationals and residents |
| Who doesn't need to file Form 1098-T? | Non-resident aliens, international students, students with tuition waived or paid with scholarships |
| Who might receive Form 1042-S? | International students who received scholarships exceeding tuition, and employees who received tax treaty benefits |
| Who will automatically receive Form 1098-T? | US citizens or permanent residents enrolled in a post-secondary degree |
| Who might receive Form 1098-T? | Full-time international students considered US residents for tax purposes |
| What is Form 1098-T used for? | Reporting payments for tuition and related expenses, determining eligibility for income tax credits |
| What information does Form 1098-T include? | Name, SSN/ITIN, home address, tuition charges, scholarships received, payments made |
| What is the deadline for Form 1098-T? | January 31 |
| What is the deadline for Form 8843 for non-resident aliens? | June 15 |
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What You'll Learn
Who receives the 1098-T form?
The 1098-T form is a tax document in the United States used to report payments received for qualified tuition and related expenses for the tax year ending on December 31 of the preceding calendar year. It includes financial information such as tuition charges, scholarships received, and payments made. Eligible educational institutions are required to file a 1098-T form for each student they enrol and for whom a reportable transaction is made. Insurers file this form for reimbursements or refunds of qualified tuition and related expenses.
The form is used by students who file income taxes in the United States as an informational tax document to determine eligibility for income tax credits based on the amounts spent on education. These federal tax benefits include the American Opportunity Credit, the Lifetime Learning Credit, and the tuition and fees deduction. However, nonresident aliens are generally not eligible to claim any of the education-related tax credits or deductions that the 1098-T form is intended for.
According to IRS guidelines, a 1098-T statement will not be provided to non-resident aliens, international students, or where qualified tuition and related expenses are entirely waived or paid in full by scholarships. However, some international students may receive a Form 1042-S (Foreign Person's U.S. Source Income Subject to Withholding). This form is typically received by international students who received scholarships exceeding their qualified tuition for at least one academic term.
To obtain the necessary information for filing Form 1098-E or 1098-T, educational institutions may use Form W-9S to collect the student's name, address, TIN, and student loan certification. The use of Form W-9S is optional, and institutions may collect this information using their own forms, such as admission or enrolment forms, or financial aid applications.
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What is the purpose of the form?
The purpose of Form 1098-T is to report payments received for qualified tuition and related expenses for the tax year ending on December 31 of the preceding calendar year. Eligible educational institutions must file a Form 1098-T for each student they enrol and for whom a reportable transaction is made. Insurers file this form for each individual to whom they have made reimbursements or refunds of qualified tuition and related expenses. The form includes financial information such as tuition charges, scholarships received, and payments made.
Students (and their families) who file income taxes in the United States can use the Form 1098-T as an informational tax document to determine their eligibility for income tax credits based on the amounts they have spent on education. These federal tax benefits include the American Opportunity Credit, the Lifetime Learning Credit, and the tuition and fees deduction.
It is important to note that nonresident aliens, including international students, are generally not eligible to claim any of the education-related tax credits or deductions for which Form 1098-T is intended. According to IRS guidelines, a 1098-T statement will not be provided to non-resident aliens, international students, or where qualified tuition and related expenses are entirely waived or paid in full with scholarships. However, some international students may receive Form 1042-S (Foreign Person's U.S. Source Income Subject to Withholding).
The eligibility to receive a 1098-T form depends on various factors, including citizenship status, enrollment credits, and tax residency status. U.S. citizens or permanent residents enrolled in a degree program at an eligible educational institution will automatically receive a 1098-T form. On the other hand, international students may need to request the form and determine their eligibility for tax credits based on their specific circumstances.
Overall, the purpose of Form 1098-T is to provide students and the IRS with information on qualified tuition and related expenses, which can then be used to determine eligibility for income tax credits and deductions.
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What to do with the form?
If you are an international student, you may receive a Form 1098-T from your university. This is a tax document that reports the payments received by your university for qualified tuition and related expenses for the tax year ending on December 31 of the preceding calendar year. It includes financial information such as tuition charges, scholarships received, and payments made.
If you are a non-resident alien international student, you will not receive a Form 1098-T. Non-resident alien international students are generally not eligible to claim any of the education-related tax credits or deductions that Form 1098-T is intended to document. However, if you are considered a U.S. resident for tax purposes and plan to claim education tax credits, you will need Form 1098-T.
If you are a current student, the Form 1098-T will be available on your Student Account Dashboard. You can view, download, save, or print your most recent form by clicking on "Tax Forms" on the left side menu.
You can use Form 1098-T as an informational tax document to determine your eligibility for income tax credits. Use the amounts you paid and are deemed to have paid during the tax year for qualified education expenses. You should use the information on Form 1098-T in conjunction with your own payment records to complete your individual tax return.
If you receive a Form 1098 for mortgage interest, you can choose to include it in your tax return if you itemize your deductions. However, if you do not intend to itemize your deductions, you can simply leave the information from Form 1098 blank in your tax return. Not including Form 1098 will not result in any red flags from the IRS.
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How to access the form?
As an international student, you may be eligible to receive a Form 1098-T, also known as a Tuition Statement. This form is used to report payments received for qualified tuition and related expenses to the United States Internal Revenue Service (IRS).
For Current Students:
If you are currently enrolled in a university or college, you can access your Form 1098-T through your Student Account Dashboard. Log in to your student account and look for a menu option labelled "Tax Forms" or something similar. From there, you should be able to view, download, save, and/or print your most recent Form 1098-T.
For Students at Specific Institutions:
The process for accessing Form 1098-T may vary slightly depending on your educational institution.
- City University of New York (CUNY): CUNY offers all students the option to consent to receiving Form 1098-T electronically. To do this, log in to CUNYfirst Home, navigate to Student Center > Financial Account > View 1098-T, and select Grant Consent. You will then be able to view, print, save, and email the form when it is produced. If you do not choose the electronic option, CUNY will mail a paper form to your mailing address listed on CUNYfirst.
- Stanford University: Stanford allows students to opt for electronic delivery of Form 1098-T. If you choose this option, you will receive an email notification when the form is available in Axess. If you do not opt for electronic delivery, Stanford will mail a paper form to your home address on file.
General Information:
- Timing: Form 1098-T is typically made available annually on or before January 31st for the prior tax year.
- Notifications: You will usually receive a notification when the form is ready for you to access.
- Mailing Address: Regardless of whether you receive Form 1098-T electronically or by mail, the IRS requires a complete mailing address on the form. Ensure that your educational institution has your correct and up-to-date address information.
Please note that eligibility for receiving Form 1098-T may vary based on your student status and other factors. Some institutions, such as Stanford University, specify that international students who are non-resident aliens do not receive Form 1098-T. However, full-time international students who are considered US residents for tax purposes may request this form. If you have any questions or concerns, it is recommended to contact your college's 1098-T representative or a tax professional.
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What if I'm an international student?
If you are an international student, you may or may not receive a Form 1098-T. According to IRS guidelines, a 1098-T statement will not be provided to non-resident aliens, international students, or where qualified tuition and related expenses are entirely waived or paid in full by scholarships. However, starting with the reporting year 2019, some universities like Penn State began issuing a Form 1098-T for all students, including international students who may or may not be eligible for an education tax benefit or who may not file taxes in the United States.
If you are a non-resident alien international student, the email does not apply to you. However, if you are considered a U.S. resident for tax purposes and plan to claim education tax credits, you will need the Form 1098-T. For tax purposes, most F-1/J-1 international students are considered non-residents of the United States. In general, anyone entering the U.S. in F or J student status is exempt from the substantial presence test for the first 5 years, meaning they are non-residents for tax purposes during that time. In the 6th year, students must determine their tax status by completing the substantial presence test.
If you are a current student, the Form 1098-T will be available on your Student Account Dashboard. To view or print it, click on “Tax Forms” on the left side menu to view, download, save, or print your most recent form.
Some, but not all, international students will receive Form 1042-S (Foreign Person's U.S. Source Income Subject to Withholding). The two largest groups of foreign visitors who receive Form 1042-S include students who received scholarships in excess of their qualified tuition for at least one academic term and Northwestern University employees who received tax treaty benefits in their paychecks during the year.
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Frequently asked questions
The 1098-T form is a tax document that needs to be filled out by US nationals and residents to determine eligibility for income tax credits. International students are generally not required to fill out this form, as they are not eligible for the same tax credits as US residents.
If you are an international student on an F-1 or J-1 visa, you are likely considered a non-resident alien for US tax purposes and are not required to fill out the 1098-T form. However, you may still need to file a tax return and may be eligible for certain tax benefits, so it is important to consult with a tax professional or the Internal Revenue Service (IRS) for specific guidance.
If you received a 1098-T form as an international student, it may be because your university is required to provide this form to all students, regardless of their residency status. However, this does not necessarily mean that you are eligible for the tax credits listed on the form. Again, it is important to consult with a tax professional or the IRS to determine your specific tax obligations and eligibility for any tax benefits.
