Tax Form 1098-T - Tuition Statement

Webster University is required to issue 1098-T forms for qualified tuition billed during the tax year. These forms will be 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 take the tuition and fees deduction or claim an education credit on form 1040 or 1040A 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 a tuition and fees deduction or 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, ‘here’ where it says “Click here to view your 2015 Form 1098-T.” Do not use the drop down box of prior years unless you are looking for a prior year form (2009-2014).


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 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 take either the tuition and fees deduction or claim an education credit on Form 1040 or 1040A 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 the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.

Amounts Billed for Qualified Tuition and Related Expenses

Box 2 of Form 1098-T reports the qualified tuition and related expenses billed to you during the 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 has chosen to report qualified tuition and related expenses that were billed during the calendar year, rather than the amount that was paid. In general, qualified tuition and related expenses are considered to be billed in the year in which the course is held (i.e. Spring 2016 courses are reflected in 2016). The billed amount of tuition and fees reported in Box 2 is reduced by the following deductions:

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. You will receive a 1098T directly from your school for these tuition and fees.

The amount shown in Box 2 for qualified tuition and related expenses billed during the calendar year may represent an amount that is different from the amount actually paid during the calendar year, although for many students the amounts will be the same. Under section 25A of the Internal Revenue Code and the associated regulations, a taxpayer may take a tuition and fee deduction or 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 take a tuition and fee deduction or claim an education credit with respect to the entire amount billed and reported in Box 2. 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 of Form 1098-T reports adjustments made to qualified tuition and related expenses reported on a prior year Form 1098-T in Box 2. The amount reported in Box 4 represents a reduction in tuition billed during a prior calendar year. For example, if you received a tuition waiver for a tuition billed in Fall 2015 in calendar year 2016, 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 of charges 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 amount not reported (because they are not administered and processed by Webster University) may reduce the amount of any allowable tuition and fee deduction or 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 tuition and fees deduction or 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 2 includes amounts for an academic period beginning in the next calendar year. For example, if you were billed the Graduation Candidacy Fee in 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 tuition and fee deduction or 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 tuition and fee deduction or 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 the tuition and fee deduction or 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.

What Deduction Can You Take?

Your own records should serve as the primary source of information used in determining whether, and for how much, a tuition and fee can be taken or an education credit 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
  • Work study payments or payroll deduction payments

Only payments identified in the first three bullet points are considered eligible for tuition and fee deduction or education credit, and then only to the extent that your tuition and qualified fees listed in Box 2 exceeds the scholarships and grants amount in Box 5. 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.

If the amount reported in Box 5 exceeds the amount reported in Box 2, you may have received non-qualified scholarships that are reportable as income. Please review your student statement account activity to determine if your scholarships and grants, excluding payments received from government entities and employers, exceed your qualified tuition and fees. If this is the case, please review IRS Topic 421 - Scholarships, Fellowship Grants and Other Grants and consult with the IRS or your tax advisor as to how you should report this income.

However, there are instances where government entities and employers have made advance or overpayments to the University on your behalf. In this instances, the qualified tuition and fees or return of the payment have been or will be reported in a calendar year different from 2016 and are merely timing differences.

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.