1098-T Information

Box 1 Calculation – The IRS instructs institutions to report payments received for qualified tuition and related expenses from all sources during the calendar year less any reimbursements or refunds, up to the total amount billed in that same calendar year.

Box 5 Calculation –  The IRS instructs institutions to enter the total amount of scholarships and grants that were administered and processed during the calendar year for the payment of the student’s cost of attendance.

• Spring tuition is billed in December of the prior year; financial aid is applied to the bill during the spring semester.
  • May graduates may not have an amount in Box 1 because no tuition is billed in the calendar year but, can have an amount in Box 5 to report scholarships and grants received in the calendar year.
  • May graduates without any scholarship and grant awards may not receive a 1098T.
  • First year and other new students may have a larger amount in Box 1 and a smaller amount in Box 5 the first year.

Box 1 – Payments Received for Tuition and Fees

Box 5 – Scholarships & Grants (Financial Aid)

Box 5 may be greater than box 1 if the amount of grants and scholarships posted to the student account is greater than the amount paid for qualified tuition and related expenses (QTRE) during the tax year. The amount shown in box 1 is limited to the total amount of QTRE charged in the calendar year. In most cases, the charges for the prior spring/winter terms have posted in the prior tax year. To determine if this is taxable please refer to IRS Publication 970.