1098-T Tax Form
Educational institutions are required by law to report to the IRS and students the amount of qualified tuition and related expenses billed to students or paid by students during the calendar year.
Students can use this information in preparation of their Taxes. The Federal government currently has two Education Tax Credits available, the Hope Credit and the Lifetime Learning Credit. Both credits allow eligible taxpayers to claim a tax credit against their federal income tax for qualified tuition and related expenses. The information reported on the 1098-T helps the student evaluate eligibility for these credits. Each tax credit has different requirements which must be met before the credit may be claimed. These requirements can be found in IRS Publication 970, Tax Benefits for Education which may be obtained from the IRS website at www.irs.gov/uac/Publication-970,-Tax-Benefits-for-Education-1.
College of the Canyons does not provide any information or guidance in reference to your eligibility for these Education Tax credits. We strongly encourage students to seek professional advice regarding eligibility for this tax credit.
Frequently asked questions:
When will I receive my 1098-T?
The Santa Clarita Community College District, College of the Canyons prepares data to print the 1098T Tax form at the beginning of each calendar year. All forms will be mailed to the student’s legal mailing address on file by January 31st.
All forms will be mailed to the student’s legal mailing address that is on file with the college. If you have moved, please update your address as soon as possible. Any address changes made after January 1st, will not be reflected in your 1098-T
Does everyone receive a 1098-T form?
No. A 1098-T will not be issued under the following conditions:
- You are a visa student without a valid Social Security Number (SSN) or Individual Tax Payer Identification Number (ITIN) on file. IRS Regulations specify that educational institutions are not required to issue a 1098-T in this situation, unless the form is requested by the student. All tax information is sent to the IRS in March, therefor the form must be requested no later than March 1st.
- You have qualified tuition and related expenses that are entirely waived. For example, fees that are waived through the Board of Governors Fee Waiver (BOGG).
What should you do with the 1098-T form?
Keep it for your records. Since the college sends your 1098-T information to the IRS, there is no need to attach a copy of the form to your tax return. The information contained in the 1098-T will help you determine if you may claim the Hope or the Lifetime Learning education tax credits. Review the “Instructions for Student” on the reverse side of Copy B of the 1098T. Please consult your tax advisor or refer to IRS Publication 970, Tax Benefits for Education which may be obtained from the IRS website at www.irs.gov.
The Social Security Number (SSN) or Individual Tax ID Number (ITIN) on my form is missing or incorrect. What should I do?
In order to report this information to the IRS, a Social Security Number (SSN) or Individual Tax Payer Identification Number (ITIN) is required.
Notices are sent out each November, requesting students without a SSN or ITIN to update their records.
If your form is missing a SSN / ITIN or your SSN /ITIN are incorrect, you may update your records in person at the Admissions and Records Office with a photo ID and Social Security Card. Once the update has been made, you may request a corrected form with the Student Business Office.
Student accounts that are missing a Social Security Number will still be included in College of the Canyons IRS file and noted accordingly. Students, who choose not to supply us with their Social Security Number, or provide an incorrect number, may be subject to a penalty assessed by the IRS.
All tax information is sent to the IRS in March, therefore SSN or ITIN numbers must be supplied and updates to the form must be requested no later than March 1st.
I did not receive a 1098T form; what office do I contact?
A duplicate can be requested by contacting the Student Business Office. Duplicates take approximately one week to process. They may be picked up in person with a photo ID or mailed to the student’s current legal mailing address on file with the college. Due to the sensitivity of the form, copies cannot be issued to family members, faxed, emailed or have totals given over the phone.
Why is the amount in Box 1 “Payment received for qualified tuition and related expenses” blank?
Educational institutions have the option to report qualified tuition based on either payment made towards qualified tuition in the calendar year or the amount of qualified tuition billed within the calendar year. Schools that use the payment method will report qualified tuition in Box 1 and schools who use the billing method will report qualified tuition in Box 2.
Santa Clarita Community College, College of the Canyons reports qualified tuition that was “billed” during the calendar year in Box 2.
What does an amount in Box 2 “Amounts billed for qualified tuition and related expenses” mean and why does it not equal the amount that I paid for tuition?
Santa Clarita Community College, College of the Canyons reports qualified tuition that was billed during the calendar year.
Qualified tuition includes enrollment fees, non-resident tuition, non-resident capital outlay, student center fee, material fees and credit by exam.
As per IRS regulations, qualified tuition does not include the health fee, student representative fee, parking fee and student support fee.
What does the amount in Box 4 “Adjustments made for a prior year” mean?
This lists the amount of refunds issued during the current calendar year for "qualified tuition and related expenses" reported on a 1098-T for a prior tax year. Refunds may be the result of dropped, cancelled or withdrawn classes, nonresident to resident classification, fee waivers, scholarships or third party sponsorships.
What does an amount in Box 5 “Scholarships or grants" mean?
This lists the net amount of certain forms of educational assistance that were received or applied to your student account during the calendar year, regardless of the semester that the funds were intended. The amount in Box 5 may include fee payments and other credits received in the form of grants, scholarships or formal billing arrangements. Formal billing arrangements include sponsorship accounts with your employer, local business or a government entity such as DSPS or Veteran Affairs. Any subsequent adjustments or reductions to educational assistance that occurred in the same calendar year are included in this amount.
What does an amount in Box 6"Adjustments to Scholarships or grants for a prior year" mean?
This lists a total of scholarships, grants or formal billing arrangements that were reported on a 1098-T for a prior year and were adjusted or reduced in the current tax year.
What does the check mark in Box 7 “Includes amounts for an academic period beginning January – March” mean?
A check mark in Box 7 means that you have registered and have been billed for classes that will start in the following calendar year.
What does the check mark in Box 8 “If at least half-time” mean?
If Box 8 is checked, it indicates that you were considered to be "enrolled at least half-time" for one or more semesters during the calendar year.
At College of the Canyons, "at least half-time" means that you were enrolled in 6 or more units for any semester (Fall or Spring) or that you were enrolled in 3 or more units for any term (Winter or Summer).
My 1098T amounts are incorrect, what do I do?
Please contact the Student Business Office. We will analyze your account and issue a corrected 1098T statement if an error was made.