Educational Tax Benefits
What is the difference between a tax credit and a tax deduction?
A tax credit directly reduces the amount of federal tax. A tax deduction is subtracted before calculating taxable income.
Can I still claim a credit if I receive a scholarship?
No, you cannot claim a credit for tuition and required fees if paid for with a tax-free scholarship.
If the amount of the tuition and required fees I paid is higher than my scholarship, can I take a credit for the difference?
Can I claim credits for tuition and required fees I paid with government-subsidized loans?
Yes, they qualify if you must repay the loan. The credit is claimed in the calendar year in which the expenses are paid, not the year in which the loan is paid.
Can I take both a deduction and an education credit for the same student in the same calendar year?
Where can I find additional information?
For additional information regarding educational credits, deductions, and benefits, see Tax Information for Parents and Students.
What is Form 1098-T?
Michigan Tech is required by IRS Section 1.65050S-1 to send Form 1098-T to students who were enrolled in courses for the calendar year and who had qualified tuition and required fees billed during the calendar year. The form is used to assist the IRS and students in determining eligibility for education-related benefits.
Will I receive a 1098-T form?
You should receive a 1098-T form if you were enrolled in courses for the calendar year, had qualified tuition and required fees billed more than scholarships administered, and are not a nonresident alien.
When is the 1098-T mailed and to what address?
The 1098-T will be mailed to the student’s current permanent address in our computer system by Jan. 31.
How do I change my address?
Your current permanent mailing address may be changed in Banweb.
I lost my 1098-T. How can I get another one?
The 1098-T may be printed from Banweb under Student Services, which is accessed with your ISO user ID and password.
If I receive a 1098-T, does that mean I qualify for the Lifetime Learning Credits or other tax benefits?
Not necessarily. There are many eligibility requirements and restrictions with these education benefits. The tax benefits are based on the amount of eligible tuition and required fees paid during a particular calendar year out of your own pocket (loans count as out of pocket). Michigan Tech is unable to provide tax advice regarding how to use Form 1098-T when filing your tax return. You should consult your tax professional to determine whether you meet all the criteria for these benefits and the eligible amount. You may refer to IRS Publication 970 for additional information.
How do I determine which expenses will qualify?
You should consult your tax professional to determine the eligible expenses. You may refer to IRS Publication 970 for additional information.
Why does Michigan Tech show Box 2-Amounts Billed instead of Box 1-Payments?
The IRS requires colleges and universities to choose one reporting method—either amounts billed or amounts paid during the calendar year. We chose to report the “amounts billed” method. We report using this method every year.
How much did I pay in tuition and related fees for this calendar year?
We have provided information regarding your student account at the bottom of Form 1098-T. If additional detail is needed, you may obtain a printout of each relevant semester through Banweb.
What if I didn’t receive a 1098-T?
There are four possible reasons:
- You did not have any billed eligible tuition and required fees for the calendar year. Michigan Tech bills for the spring semester in November of the prior year. Therefore, if you were only enrolled during the spring semester, you may not receive one—i.e., if you graduated at the end of the spring semester, the amounts were actually billed in the prior November, so nothing was billed in this calendar year.
- It may have been mailed to an old address.
- You are a nonresident alien and therefore not eligible for the benefits.
- You received grants, scholarships, etc. that exceeded the amounts billed for eligible tuition and required fees and therefore are not eligible.
What if the information on my 1098-T is incorrect?
You may contact the Accounts Receivable department if your social security number or any other information is incorrect.
Can my parents be provided with any information reported in the 1098-T?
No. Due to federal regulations on privacy rights for individuals, the University is only authorized to provide 1098-T information to students.
Do I have to attach the 1098-T to my tax return?
No. The 1098-T is an information report. You should keep it with your other tax information, along with copies and receipts of charges and payments for each semester.
What information is sent to the IRS?
Colleges and universities are required to provide the IRS with the same information that is reported on your IRS Form 1098-T.
Why does Michigan Tech need my social security number?
Michigan Tech is required to file information regarding qualified tuition and required fees and scholarships on Form 1098-T, and the IRS requires us to furnish the SSN if available.
What if I do not want to give my social security number to Michigan Tech? Can I still claim the credit?
Without your SSN, Michigan Tech cannot properly report your qualified tuition and required fees to the IRS.
Where can I find additional information?
Tax forms and publications may be ordered by calling the IRS at 800-829-3676. Questions may be directed to the IRS by calling 800-829-1040.