1098-T Tuition Tax Credit Information

 

Accessing your 1098-T electronically:

UNCP 1098-T Tuition Tax Credit Information

The University of North Carolina at Pembroke is not qualified to provide legal and/or tax advice. The information provided may or may not reflect recent revisions in IRS regulations. Please contact the IRS, visit their website at www.irs.gov, or contact your tax preparer for tax-related questions for your specific situation.

Important notice: Effective January 1, 2018, tax law requires all educational institutions to report payments received for qualified tuition and related expenses (QTRE) in Box 1 of Form 1098-T. Scholarships & Grants awarded during the calendar year will continue to be shown in Box 5.

Families filing a U.S. tax return may be eligible for educational tax credits when claiming their University of North Carolina at Pembroke student as a dependent. In mid to late January, Student Accounts Office will generate an IRS Form 1098-T necessary to file for these tax credits. The 1098-T will be provided electronically via the student's account for students that have elected to receive their IRS 1098-T Tuition Tax Credit form electronically. Students that have not consented to receive their 1098-T statements electronically will have a paper statement mailed to them by January 31. 

Students also have the option to view and print online using the following instructions:

  • Go to https://heartland.ecsi.net/index.main.html#/access/lookup 
  • Click "I need my 1098-T Tuition tax statements."
  • Enter "University of North Carolina at Pembroke" for the School Name and click "Submit."
  • Enter your personal information, check "I'm not a robot," then click "Continue."
  • Click on "+" on the right side of the screen to display your tax information, then print

If you would like to receive notification electronically (instead of a paper copy), please give your consent by following the instructions in the link below. Please contact Heartland ECSI's Customer Service Department at 866.428.1098 for any additional information.

The benefits to receiving electronic notification are:

  • Online delivery provides access to the form 1098-T earlier than the traditional mailing process.
  • Online delivery eliminates the chance that the 1098-T will get lost, misdirected, or delayed during delivery or misplaced once the student receives it.
  • Signing up for online delivery is easy and secure.

To give consent to receive your notification electronically; sign up using the SECURE website below, giving us your Name, SID and email address (you can also include your parents' email in the alternate email space):  http://www.ecsi.net/gateway/1098t-signup.html?school=KV

Please note: Electronic consent will remain in effect until you email your withdrawal of consent electronically to UNCP1098T@uncp.edu.  

All information that The University of North Carolina at Pembroke can provide you is either on the 1098-T form or is included on this webpage. We cannot discuss tax implications, how this form may relate to you, or give tax advice. Please consult your tax preparer with all questions related to this document. Some helpful links to the IRS at the bottom of this page may provide you with more information related to how form 1098-T may affect you. Please seek guidance from a tax professional.

Explanation of IRS Form 1098-T

The IRS Form 1098-T is provided, as required by the IRS, to provide information that may assist you in completing your individual tax return. The information listed on IRS Form 1098-T may differ from the amount you actually paid towards Qualified Tuition and Related Expenses (hereafter known as QTRE). We strongly recommend seeking professional assistance when claiming an education tax credit. Regardless of the information provided on the 1098-T, if you choose to claim an education tax credit, you should always keep documentation such as invoices and receipt of payment that supports any claimed tax credit even if you report only what is on IRS Form 1098-T.

  • The IRS Form 1098-T is an information form filed with the Internal Revenue Service.
  • The IRS Form 1098-T that you receive reports amounts paid for qualified tuition and related expenses, as well as other related information
  • You, or the person who may claim you as a dependent, may be able to claim an education tax credit on IRS Form 1040 for the qualified tuition and related expenses that were actually paid during the calendar year.

Amounts Paid for Qualified Tuition and Related Expenses

BOX 1 of IRS Form 1098-T reports the qualified tuition and related expenses paid during the calendar year. Sometimes this is referred to as qualified education expenses, although the two are not always interchangeable. Consult a tax professional for explanation. For purposes of IRS Form 1098-T, The University of North Carolina at Pembroke, has determined based on interpretation of the limited IRS guidance provided that the following charges are included or not in qualified tuition and related expenses. Please note, IRS Publication 970 states that "the amount on form 1098-T might be different from the amount you actually paid and are deemed to have paid." Further IRS Form 8863 instructions state that "The amount of qualified Tuition and related expenses reported on Form 1098-T may not reflect the total amount of the qualified tuition and related expenses paid during the year for which you may claim the tax credit. You may include qualified tuition and related expenses that are not reported on IRS Form 1098-T when claiming one of the related credits if you can substantiate payment of these expenses."

Qualified Tuition and Related Expenses INCLUDED

Charges not considered Qualified Tuition and Related expenses and therefore NOT INCLUDED

  • Resident and Non-resident Tuition
  • Program-specific charges (ie Tuition Differential for Masters Programs such as MBA, MAT and MSN).
  • Required General Fees (Excludes Health Services Access Charge)
  • Book Rental Fee (undergraduate)
  • ASG Fee (Association of Student Government)
  • Education & Technology Fee
  • Safety & Security Fee
  • Student Activity Fee (Summer charged separately, Fall/Spring included in General Fee - Both are included)
  • Housing related charges
  • Dining, Meal Plans, Express Account Charges
  • Insurance (such as BCBS Student Blue Medical Insurance & Intern Practicum Charge (liability insurance)
  • Late Fees, Interest on Past Due Account
  • Library Fines, Fees
  • Orientation Fees
  • Parking Permit or fines
  • Health Services Access Fee
  • Other Health Service charges
  • Department fees for non-return or damage (ie Books not returned,Chemistry Breakage)
  • Wellness Service Fee

Please note that the timing of each charge and payment/scholarship are important regarding which year they are reported in. Many students have charges from Nov-Dec of 2020. Because in 2020 many students had payments larger than their QTRE, the BOX 1 amount for the Spring 2021 term may have been included in the 2020 1098-T. Also, in many of those same circumstances, the student also received scholarships and grants for Spring 2021 that did not post until January 2021. This may cause the 2021 1098-T to have zero in BOX 1 but BOX would be populated. Please consult a tax prepared regarding what this means to your individual tax situation.

 


Adjustments Made for a Prior Year

BOX 4 of IRS Form 1098-T reports adjustments made to qualified tuition and related expenses calculated in a prior year. The amount reported in Box 4 represents a reduction in tuition billed during a prior calendar year. For example, if you were billed in Nov-Dec 2020 and later had a reduction in the QTRE charges in 2021 (ie withdrawal, courses dropped), Box 4 reports the decrease in billed tuition due to the withdrawal or drop. The amount reported in BOX 4 reports the decrease in QTRE from the withdrawal or drop of courses that reduced the QTRE. The amount reported in Box 4 for adjustments to qualified tuition and related expenses may reduce any allowable education credit you may claim for the prior year. See your tax advisor and/or IRS Form 8863/IRS Publication 970 for more information. 

Note: It is possible for the other boxes to be empty and only have a number in BOX 4. This means as stated above that there was a reduction in qualified tuition and related expenses calculated on the 2020 1098-T that was reduced after December 31, 2020 but had no other reportable activity for the 2020 calendar year. Please consult a tax advisor and/or IRS Form 8863 and IRS Publication 970 for assistance.

Scholarships and/or Grants

BOX 5 of IRS Form 1098-T reports the total of scholarships or grants administered or processed by the Office of Student Accounts and/or the Office of Student Financial Aid during the calendar year. 

Please note that the timing of each charge and scholarship are important regarding which year they are reported in. Many students have charges from Nov-Dec of 2020. Because in 2020 many students had payments larger than their QTRE, the BOX 1 amount for the Spring 2021 term may have been included in the 2020 1098-T. Also, in many of those same circumstances, the student also received scholarships and grants for Spring 2021 that did not post until January 2021. This may cause the 2021 1098-T to have zero in BOX 1 but BOX would be populated. Please consult a tax prepared regarding what this means to your individual tax situation.

The amount reported in BOX 5 does not include:

  • Tuition waivers provided during the calendar year.
  • Student Loans
  • Work Study
  • Employment
  • Scholarships, grants, reimbursements, or other types of sponsorships not administered by the Office of Student Accounts and/or the Office of Student Financial Aid.

Per IRS instruction, Veteran's Education Benefit amounts received are included in BOX 5.

CARES ACT Higher Education Emergency Relief Funds (CARES HEERF)

Sections 3504, 18004, and 18008 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, allow higher education institutions to use certain funds allocated by the Department of Education to support students and higher education institutions with expenses and financial needs related to the coronavirus (COVID-19) pandemic. Based on guidance provided by the Internal Revenue Service (IRS), we have not included any CARES HEERF Funds that were awarded to students in the 1098T. Other forms of emergency aid are required to be included on IRS Form 1098-T. See IRS Frequently Asked Questions concerning CARES HEERF Fund Awards.

Adjustments to Scholarships or Grants For a Prior Year

BOX 6 of IRS Form 1098-T reports adjustments made to scholarships or grants reported on a prior year Form 1098-T that was in BOX 5. The amount reported in BOX 6 represents a reduction in scholarships or grants reported for a prior calendar year. The amount reported in BOX 6 for adjustments to scholarships or grants may affect the amount of the education credit you may claim for the prior year. See IRS Form 8863 for how to report these amounts.

Additional Information Reported

BOX 7 indicates, if checked, that BOX 1 includes amounts for an academic period beginning in the next year (2022). For example, if you registered and paid for the upcoming Spring Semester during November or December, this box will be marked.

BOX 8 shows whether you are at least one-half of the normal full-time workload for at least one academic period during the calendar year.  

BOX 9 shows whether you are enrolled in a program leading to a graduate level degree, certificate, or other recognized education credential.

Special Note regarding Tuition/Fee Waivers: Please see the link below for additional information regarding impact of Tuition and Fee Waivers on taxes

https://www.irs.gov/newsroom/tax-benefits-for-education-information-center

Additionally, the links below may clarify the instructions, purpose, and applicability of the 1098-T for your individual tax situation.

All information that The University of North Carolina at Pembroke, can provide you is either on the 1098-T form or is included on this webpage. We are not allowed to discuss tax implications, how this form may relate to you, or give tax advice. Please consult your tax preparer with all questions related to this document. Some helpful links to the IRS at the bottom of this page may provide you more information related to how form 1098-T may affect you. Please seek guidance from a tax professional.

https://www.irs.gov/individuals/students

https://www.irs.gov/taxtopics/tc421

https://www.irs.gov/individuals/international-taxpayers/foreign-students-and-scholars

https://www.irs.gov/newsroom/tax-benefits-for-education-information-center

https://www.irs.gov/forms-pubs/about-publication-970