How to Read Your Stanford Annual Tuition Statement (Form 1098-T) and Frequently Asked Questions

 

This page is provided to assist you in understanding the Annual Tuition Statement, IRS Form 1098-T. It is important to note that not all schools report the 1098-T in the same way, as certain options are allowed by law. Stanford reports amounts of qualified tuition and related fees billed (Box 2 of the Form) and NOT the amount that was paid (Box 1 of the Form) for the year. Examples below illustrate how Stanford prepares Form 1098-T.

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On this page:

• Why We Issue Form 1098-T
• Explanation of Stanford's 1098-T Preparation
• Example 1 - Adjustments to Amounts Billed
• Example 2 - Adjustments to Scholarships and Grants
• Reportable and Non-reportable Items
• Frequently Asked Questions

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Why We Issue Form 1098-T

All eligible educational institutions are required by the Taxpayer Relief Act of 1997 to file an Annual Tuition Statement (IRS Form 1098-T) for each student who is a U.S. citizen or permanent resident pursuing a degree, and for whom a reportable transaction is made. Form 1098-T reports amounts billed for qualified tuition and related expenses to the Internal Revenue Service (IRS) for purposes of determining eligibility for Hope and Lifetime Learning Credits.

Form 1098-T will not be filed for non-resident students unless specifically requested by the student.

Explanation of Stanford's 1098-T Preparation

Box 1 – Payments Received for Qualified Tuition and Related Expenses
Schools are given the option to use either Box 1 or Box 2 in any tax year. Stanford elects to use Box 2.

Box 2 – Amounts Billed for Qualified Tuition and Related Expenses
Shows the total amounts billed for qualified tuition and related expenses less any related reductions in charges. Stanford uses this method of reporting. Box 2 shows the amounts billed during the calendar year (January 1 through December 31) for qualified tuition and related expenses.

Box 3 – Checked When There is a Change of Reporting Method
This box will only be checked on your form if Stanford has changed the method of reporting from Amounts Billed (Box 2) to Payments Received (Box 1) or vice versa. No such changes occurred in 2011.

Box 4 – Adjustments Made for a Prior Year
Shows any adjustment made for a prior year for qualified tuition and related expenses that were reported on a prior year Form 1098-T. This amount may reduce any allowable education credit that you claimed for the prior year. See "recapture" in the index to Publication 970 to report a deduction in your education credit or tuition and fees deduction.

See Example 1 - Adjustments to Amounts Billed.

Adjustments in Box 4 occur for two reasons:

1. Students are billed for Pre-Enrolled Tuition and/or Fees during the tax year (January – December), and then drop units in a future year. This most often happens for the winter quarter when the University bills students on November 20th. When students add units in January – March of the following year, an adjustment will occur.
2. Students are billed for tuition in the tax year, then choose not to enroll by the Stanford "Add" deadline, thus causing a reduction in amount billed in the winter term in January. Because Stanford bills in November for the winter quarter, this box is commonly populated with the adjusted amount.

Box 5 – Scholarships or Grants
Shows the total of all scholarships or grants administered and processed by Stanford. The amount of scholarships or grants for the calendar year (including those not reported by the institution) may reduce the amount of the education credit you claim for the year.

See Example 2 - Adjustments to Scholarships and Grants.

Box 6 – Adjustments to Scholarships or Grants for a Prior Year
Stanford uses this box to show adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. You may have to file an amended income tax return (Form 1040X) for the prior year.

See Example 2 - Adjustments to Scholarships and Grants.

Adjustments occur for three reasons:

1. Aid issued in a prior year has had a funding source change
   This occurs when a student is awarded an amount from a general fund in a prior year. If the fund source changes in the current reporting year, the prior aid is removed (a reduction). The removed aid will be replaced with aid from a new fund source. This may be an increase or decrease from the original amount.
2. Aid from a prior year has been removed
   This may occur because the student is no longer eligible to receive the funds.
3. Aid from a prior term increased
   In this case, the aid given in the prior term was under-awarded. This may be due to a late request for additional aid by the student.

Box 7 – Amounts for an Academic Period Beginning in January 2012 through March of 2012
Shows whether the amount in box 1 or 2 includes amounts for an academic period beginning January-March 2012. See Publication 970 for how to report these amounts.

Box 8 – Check if at Least Half-Time Student
Shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at the reporting institution. If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the American Opportunity credit. You do not have to meet the workload requirement to qualify for the lifetime learning credit.

Box 9 – Check if a Graduate Student
Shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential. If you are enrolled in a graduate program, you are not eligible for the American Opportunity credit, but you may qualify for the lifetime learning credit.

Box 10 – Insurance Contract Reimbursements or Refunds
This box shows the total amount of reimbursements or refunds of qualified tuition and related expenses made by an insurer. This box will not be checked.

Below are two examples of how a student’s Form 1098-T may be adjusted. Example 1 illustrates how tuition and related expenses would be reported. Example 2 illustrates how scholarships and grants would be reported.

Example 1 - Adjustments to Amounts Billed

Boxes Affected:

• Box 2: Amounts Billed for Qualified Tuition and Related Expenses
• Box 4: Adjustments Made for a Prior Year

On November 19, 2009, Student X was billed $7,620 for 8 units for the Winter quarter which began in January 2010. Form 1098-T for 2009 shows $7,620 in Box 2.

Student X 's 2009 Form 1098-T
Box 1 - blank Box 2 - $7,620 (Billed pre-enrolled tuition amount on November 19, 2009) Box 3 - blank Box 4 - blank Box 5 - $0.00 Box 6 - $0.00 Box 7 - checked (Indicate that Student X was billed for a future period)

In January 2010, Student X added 4 more units for a total of 12 units ($11,500) for the Winter quarter. This triggered a reduction in pre-enrolled tuition and an increase in tuition in Winter quarter.

Student X 's 2010 Form 1098-T
Box 1 - blank Box 2 - $11,500 (Billed tuition for actual amount on January 19, 2010 based on added units) Box 3 - blank Box 4 - $7,620 (Represent the reduction in pre-enrolled tuition amounts in Box 2 for November 2009) Box 5 - $0.00 Box 6 - $0.00 Box 7 - This box is checked if Student X was billed for a future period

Example 2 - Adjustments to Scholarships and Grants

Boxes Affected:

• Box 5: Scholarships or grants
• Box 6: Adjustments to scholarships or grants for a prior year

On September 19, 2009, Student Y was awarded $12,000 paid from the General Scholarship Fund for the Autumn quarter which began in September 2009. Form 1098-T for 2009 shows $12,000 in Box 5.

Student Y 's 2009 Form 1098-T
Box 1 - blank Box 2 - $11,500 Box 3 - blank Box 4 - $0.00 Box 5 - $12,000 (General Scholarship issued for the Autumn term 2009) Box 6 - $0.00 Box 7 - This box will be checked if Student Y was billed for a future period

In January 2010, the financial aid office removed the $12,000 General Scholarship Fund for the Autumn quarter, 2009. This reduction / transaction triggered an adjustment of $12,000 in Box 6 of the 2009 Form 1098-T (see below) because it affected a prior year.

In the same month (January 2010), the financial aid office posted $12,000 for the Autumn quarter, 2009 from the Memorial Scholarship Fund. This amount is shown in Box 5.

Student Y 's 2010 Form 1098-T

Box 1 - blank Box 2 - $11,500 Box 3 - blank Box 4 - $0.00 Box 5 - $12,000 (Scholarships or grants posted in January 2010 for Autumn 2009 term - in our example here, the Memorial Scholarship Fund). This was the amount PREVIOUSLY reported on the 2009 1098-T.) Box 6 - $12,000 (This adjustment is recorded because it effects a transaction from 2009, the prior year.) Box 7 - This box will be checked if Student Y was billed for a future period

Reportable and Non-reportable Items

Reportable Charges (Qualified Tuition and Related Expenses) on the 1098-T

• Undergraduate Tuition
• Graduate Tuition
• Graduate School of Business (GSB) Tuition
• GSB/Law Dual Degree Tuition
• Law School Tuition
• Medical School Tuition
• Undergraduate Student Activity Fees
• Graduate Student Activity Fees
• GSB SBSSA Activity Fee
• Document Fees
• GSB and Law Course Materials Fees
• Course Materials and Reader Fees

Reportable Financials

• All Financial Aid (Scholarships and Grants)

Non-Reportable Charges

• Health insurance and campus health service fees
• Room and board
• Miscellaneous charges such as room damage or cleaning fees
• Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program

Non-Reportable Financials

• Student loans
• 529 College Saving Program payments

Non-Reportable Students

• Non-degree seeking students
• Non-resident alien students, unless requested by the student

Frequently Asked Questions

When will my 1098-T be available?

Form 1098-T is available in mid to late January of each year, to all eligible current and former students (students with enrollment activity for the prior calendar year). Stanford uses ACS (Affiliated Computer Services, Inc.), a tax credit report service, to provide Form 1098-T to Stanford students. Unless a student opts for electronic receipt of the 1098-T, the form will be mailed to the Home Address listed in Axess.

How can I receive my 1098-T electronically instead of by U.S. mail?

Students may opt to receive the 1098-T electronically by going to http://www.1098t.com then clicking Access My Record. For those students who opt to receive the form electronically, an email notification will be sent at the same time paper forms are mailed.

To access individual Form 1098-T online:

1. Logon to http://www.1098t.com.
2. Click Access My Record.
3. Follow the instructions to view and/or print your 1098-T. You may access forms for the past three years only.

I went online and received a message that my record doesn't exist. Why?

This may be due to several reasons:

• If you are requesting a copy of your 1098-T that is more than three years old, it will not display online. To request an older copy of your 1098-T, submit a HelpSU request or call: (toll-free) 866-993-7772 or 650-723-7772.
• If you took classes or were charged for fees that do not qualify under IRS rules, your information will not display.

If you are a non-resident student, your form was not reported to the IRS. Schools do not have to report non-resident alien students, unless requested by the student. To request a copy of your 1098-T, submit a HelpSU request or call the Student Services Center: (toll-free) 866-993-7772 or 650-723-7772.

What is Form 1098-T?

The 1098-T form is used by eligible educational institutions to report information to the IRS as required by the Taxpayer Relief Act of 1997. Eligible educational institutions are required to submit general student enrollment information and financial data for the corresponding tax year. Information included is student name, address, social security number or tax identification number, enrollment status, academic status, amount billed for qualified tuition OR amounts paid for qualified tuition (but NOT both), scholarship or grant amounts, and, if applicable, adjustments to prior year qualified tuition and/or adjustments to prior year scholarships.

What address will my 1098-T be mailed to?

Your 1098-T will be mailed to the home address shown in Axess Student Center as of December 30 of each year. If you wish to change your mailing address for your 1098-T after December 31, you may do so at http://www.1098-t.com.

How can I access my 1098-T online?

Stanford uses ACS (Affiliated Computer Services, Inc.), a tax credit report service, to provide Form 1098-T to Stanford students. In January of each year, eligible current students and former students (students with enrollment activity for the prior calendar year) will receive their individual Form 1098-T by mail. Students may also access their forms online (by clicking on the Access My Record link on http://www.1098-t.com) via the ACS web site. See instructions for accessing your record.

I need my tax forms early. Can I receive the 1098-T prior to the January mailing?

While you may be able to access prior years, Form 1098-T for 2009 will not be available until the last week in January. Information reported to the IRS will only be available at the time forms are ready to be mailed or published online at http://www.1098t.com.

I am a non-resident international student. Can I still receive a 1098-T?

Per IRS rules, if you are a non-resident international student, your form was not reported to the IRS and will not be mailed or display online. To request a copy of your 1098-T, submit a HelpSU request or call: (toll-free) 866-993-7772 or 650-723-7772.

I paid for room and/or board and health insurance. Why don’t you report these payments to the IRS?

IRS rules prohibit these expenses from being included:

"In general, qualified tuition and related expenses are tuition and fees required for enrollment or attendance at an eligible educational institution."

"Student-activity fees and fees for course-related books, supplies, and equipment are included in qualified tuition and related expenses only if the fees must be paid to the institution as a condition of enrollment or attendance."

Publication 970 also describes expenses that cannot be classified as "qualified education expenses." For either the Hope or the Lifetime Learning Credit, the section titled "Expenses That Do Not Qualify" states that: "Qualified tuition and related expenses do not include the cost of:

• Health insurance,
• Medical expenses (including student health fees),
• Room and board,
• Transportation, or
• Similar personal, living, or family expenses.

This is true even if the fee must be paid to the institution as a condition of enrollment or attendance." For more information see Publication 970.

Why aren't amounts included in both Box 1 and Box 2 on the 1098-T form?

Institutions may elect to report either the aggregate amount of payments received for qualified tuition and related expenses (box 1), or the aggregate amount billed for qualified tuition and related expenses (box 2) during the calendar year with respect to individuals enrolled for any academic period.

Why don’t you report payments in Box One?

Box one is used by schools which report Payments Received for Qualified Tuition and Related Expenses. Stanford University uses Box Two for Amount Billed for Qualified Tuition and Related Expenses. IRS rules state that institutions must select either box one or box two but not both in the same tax year.

I have a higher amount in Box 5 (Scholarship & Grants) than I do in Box Two, does this mean I have to report this as income?

To see how these amounts should be treated, please refer to IRS Form 1040 Instructions, IRS Publication 970 and IRS Form 8863.

Why does the financial aid office make changes to my aid after it has been posted?

Financial aid rules require specific management of funds disbused to students. In some cases, students may become ineligible for the amount received earlier. In other cases the fund source may change. In all cases, any reduction to the original amount or aid type will cause a reduction.

I took classes during the summer only. Should I receive a 1098-T?

Only if the classes you took were eligible under IRS reporting rules. All eligible educational institutions are required by the IRS to file Form 1098-T for each student who is a U.S. citizen or permanent resident pursuing a degree, and for whom a reportable transaction is made.

Why does Box 2 show less than I paid for the year?

Stanford does not report payments made during the year. Schools are given the option to use either Box 1 or Box 2 in any tax year. Stanford elects to use Box 2 – Amounts Billed for Qualified Tuition and Related Expenses. Box 2 shows the amounts billed during the calendar year (January 1 through December 31) for qualified tuition and related expenses.

Why does Box 5 - Scholarships and Grants, show more than I received for the year?

Stanford reports financial aid transactions made from January 1 through December 31. If you are counting aid from the academic year and not the tax year, the figures will not match.

I graduate in May of 2010; will another 1098-T form be generated, if I pay the balance in 2009?

Regardless of what you pay, your 1098-T will reflect amounts billed during the period from January 1 through December 31, 2009.

Who can claim a Hope or Lifetime Learning Tax Credit or the Higher Education Tuition and Fees Deduction?

An eligible taxpayer may claim them. An eligible taxpayer may be the student or, if the student is a dependent for federal income tax purposes, the person (e.g., parent) claiming the student as a dependent. A student who is a dependent cannot claim the tax credits or deduction on his or her own tax return. For more details, see Hope and Lifetime Learning Credits.

What is an eligible educational institution?

An eligible educational institution is a college, university, vocational school, or other post-secondary educational institution that is eligible to participate in the Department of Education's student aid programs.

How do I claim a credit or deduction?

To claim a hope or lifetime learning credit, the eligible taxpayer should use IRS Form 8863. The tuition and fees deduction is claimed using IRS Form 1040A or on IRS Form 1040. Taxpayers do not need to itemize deductions on Schedule A, Form 1040, in order to claim the deduction. Whether the credits or the deduction are being claimed, the taxpayer's financial records serve as the official supporting documentation for calculating the amount being claimed. Additional information for calculating a credit or deduction can be found in IRS Publication 970, which is available at the Affiliated Computer Services: Tax Credit Reporting Service for Students or Internal Revenue Service web site.

I paid my qualified tuition and related expenses with student loans. Can I still claim a Hope or Lifetime Learning Tax Credit or the Higher Education Tuition and Fees Deduction?

Yes. Loan funds should be considered in the same manner as cash payments when calculating a Hope or the Lifetime Learning Tax Credit or the Higher Education Tuition and Fees Deduction. However, any scholarships, grants, or other non-taxable aid must be deducted from the amount of qualified tuition and related expenses paid.

Did the above answer your questions?

For more frequently asked questions, visit the Affiliated Computer Services: Tax Credit Reporting Service for Students web site.

If you still need help, please contact the Student Services Center.