Tax Form 1098-T | Webster University

Tax Form 1098-T - Tuition Statement

In previous years Webster University issued 1098-T forms for qualified tuition billed during the tax year. Due to federally-mandated changes surrounding institutional reporting requirements, the University will now instead report the amount of qualified tuition and related expenses (QTRE) paid during the calendar year in Box 1 of the 1098-T form. This change is effective with the 1098-T forms generated in January 2019. The forms will include calendar year 2018 student account activity. These forms are available electronically by January 31st for the prior tax year. To revoke your consent to receive an electronic copy and receive a paper copy, you must complete the Written Notice to Opt-Out of Electronic Delivery form.

The IRS 1098-T form reports amounts billed to you 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 credit on form 1040 for the qualified tuition and related expenses that were actually paid during the calendar year. For example, a student who makes payment in 2016 for spring 2017 charges will only be eligible for an education credit for this payment in 2016. The IRS 1098-T form is an informational document and does not need to be attached to your tax return. There is no IRS or Webster University requirement that you claim an education credit. Please consult your tax advisor for further tax questions or advice.

How to View your 1098-T

To view your 1098-T tuition statement:

1.    Sign in to Connections

2.    Select the Student Tab

3.    Select the Monthly Statements and 1098T Forms link in the Student Account Financial Services box on the right side of the page.

4.    Scroll down (if necessary) to the 1098-T box, and click on the highlighted word, ‘Most recent form:’. You may use the drop down box next to Previous form(s) if you are looking for a prior year form (2009-2017).


Explanation of 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 received reports amount of qualified tuition and related expenses (QTRE) paid during the 2018 calendar year. 
  • You, or the person who may claim you as a dependent, may be able to claim an education credit on Form 1040 for the qualified tuition and related expenses that were actually paid during the calendar year.
  • There is no need to attach Form 1098-T to your tax return.
  • All information and assistance that Webster University can provide to you is contained in this notice.
  • There is no IRS requirement that you must claim an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.

Amounts Paid for Qualified Tuition and Related Expenses

Box 1 of Form 1098-T reports the qualified tuition and related expenses paid during the calendar year. The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year that relate to the payments received for qualified tuition and related expenses during the same calendar year.  Qualified tuition and related expenses are sometimes referred to as qualified education expenses, although the terms are not always interchangeable. For purposes of the Form 1098-T provided by Webster University, the following categories of charges are included or not included in qualified tuition and related expenses:

Included Not Included
Graduate and Undergraduate Program Tuition

Course Lab Fees

Music Lessons

Student Activity Fee

Graduation Candidacy Fee

MBS Book Voucher Purchase

Follett Book Voucher Purchase
Processing Fees

Health Insurance Premiums

Tuition Installment Plan Fee

Room and Board Charges

Housing Activity Fee

World Traveler Tickets

Money for Textbook Purchases and Fees

Registration Fees Paid for Non-Credit Courses

Miscellaneous Charges

Webster University reports Box 1 the amount of qualified tuition and related expenses that were paid during the calendar year. In general, qualified tuition and related expenses are considered to be billed in the year in which the course is held (i.e. Spring 2018 courses are reflected in 2018). 

Qualified Tuition and Related Expenses Are Reduced by current year reductions in billed amounts for semesters billed during the calendar year. For example, a reduction due to withdrawal from classes. The reductions may or may not have resulted in a refund, depending on whether the billed amounts had been paid prior to the reduction.

In addition, if you participated in our study abroad program from one of our affiliated school partnerships, your tuition and fees billed directly and paid by your school are not included. You will receive a 1098-T directly from your school for these tuition and fees. You will need to contact your school to determine your eligibility for a 1098-T tax form.

The amount shown in Box 1 for the amounts paid during the calendar year for qualified tuition and related expenses may represent an amount that is different from the amount actually billed during the calendar year. Under section 25A of the Internal Revenue Code and the associated regulations, a taxpayer may claim an education tax credit only with respect to qualified tuition and related expenses actually paid during the calendar year. You may not be able to claim an education credit with respect to the entire amount billed. Please use the student account charge and payment transaction history to determine qualified tuition and related expenses that were paid during the calendar year.

Adjustments Made For a Prior Year

Box 4 represents a reduction made to amounts billed for qualified tuition and related expenses that were reported for a prior calendar year. For example, if you received a tuition waiver for a tuition billed in Fall 2017 in calendar year 2018, Box 4 reports the decrease in billed tuition due to the waiver. 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 IRS Form 8863 or IRS Publication 970 for more information.

Scholarships or Grants

Box 5 of Form 1098-T reports the total of scholarships or grants administered and processed by the Webster University Financial Aid Office during the calendar year and payments received from 3rd parties such as the government or your employer . For purposes of the Form 1098-T provided by Webster University, the following categories are included or not included in scholarships or grants:

Included Not Included
Federal and State Grants

Webster Scholarships and Grants

Donor Named Scholarships

Tuition Remission and Exchange

Graduate Assistant Scholarship

World Traveler Award

Payments received from governmental entities including the Department of Defense, Department of Veterans Affairs, etc.

Payments received from your employer
Student loans, including Subsidized and Unsubsidized Direct Loans, PLUS and Graduate PLUS Loans, Perkins Loans, and Alternative Loans

Work Study Payments

Scholarships, grants, reimbursements, or other types of sponsorships that were paid directly to you and not  administered or processed by Webster University

The amount of any scholarships or grants reported for the calendar year and other similar amounts not reported (because they are not administered and processed by Webster University) may reduce the amount of any allowable education credit that you are entitled to.

Adjustments to Scholarships or Grants For a Prior Year

Box 6 of Form 1098-T reports reductions, reversals and returns of scholarships, grants and government and employer payments reported on a prior year Form 1098-T in Box 5. The amount reported in Box 6 for adjustments to scholarships or grants may affect the amount of any allowable education credit you may claim for the prior year. See IRS Form 8863 for how to report these amounts.

Additional Information Reported

There are three additional information Boxes that may have a check mark in them.

Box 7 indicates, if checked, that Box 1 includes amounts for an academic period beginning in the next calendar year. For example, if you registered and paid for the upcoming Spring semester during December, this Box will be marked.

Box 8 shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at WEBSTER UNIVERSITY for at least one academic period during the calendar year. If this Box is marked, you meet one of the requirements for the Hope tax credit. You do not have to meet the workload requirement to qualify for the lifetime learning credit.

Box 9 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.

Attaching Form 1098-T to Your Tax Return

You are not required to attach IRS Form 1098-T to your tax return. The IRS Form 1098-T is not like the IRS Form W-2 obtained from your employer, which is required to be attached to the tax return filed with the IRS. The primary purpose of the IRS Form 1098-T is to let you know that Webster University has provided required information to the IRS to assist them in determining who may be eligible to claim an education credit.

If Your 1098-T is Incorrect

The name, Social Security Number and address on Form 1098-T were obtained from information provided to Webster University, although the address shown on Form 1098-T is irrelevant for IRS income tax filing purposes. The two most important pieces of information on the form are your name and your Social Security Number. Both your name and Social Security Number must be correct and match that reflected on your social security card. Please call the Registrar’s Office (314) 246-7450 if either of these two pieces of information are inaccurate.

Am I Eligible for an Education Credit?

Your own records should serve as the primary source of information used in determining whether, and for how much, a deduction or an education credits claimed.

Your statement activity reports payments received and processed by Webster University including:

  • Direct payments by cash, check, ACH, or SMART Pay Credit Card
  • Payments from government agencies and employers
  • Student loans, for example subsidized, unsubsidized, PLUS, Perkins, and alternative loans

Payments identified above are considered eligible for an education credit, only to the extent that your qualified tuition and fee related expenses does not exceed the payments reported in Box 1. Students cannot claim an educational credit for any amount that was not paid towards qualified tuition and related expenses.  However, you should not rely solely on the information provided by Webster University. This is particularly true if an employer or other non-Webster University entity has paid or reimbursed you directly for tuition costs. Your student account activity does not reflect any refunds or reimbursements paid to you by an outside entity, however these amounts must be considered in determining eligibility for the tax credits.

Summary

We recommend that you review IRS Publication 970 - Tax Benefits for Education, in order to gain an understanding of the available tax benefits that may effectively lower the cost of your higher education. If you have further questions, please consult with your tax advisor or contact the IRS, 800-829-1040.