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1098 T TUITION STATEMENT

1098 - T. What it does:Provides IRS information on amounts of tuition billed to or received from students.Provides information on any scholarships and grants that Stanford receives

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1098 T TUITION STATEMENT

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    1. 1098 – T TUITION STATEMENT

    3. 1098 - T Why we need it: The growing world of tax breaks relating to educational expenses. HOPE Credit Lifelong Learning Credit Tax exempt withdrawals from CESA and 529 Plans Estate tax considerations

    4. 1098 – T FILING REQUIREMENTS Must report on each student enrolled and for whom a reportable transaction is made. EXCEPTIONS: Course for which no academic credit is offered toward a degree, certificate or credential (some CSP). Non-Resident Alien students, unless requested by student. Student whose tuition is fully paid or waived. Students whose tuition is covered by a formal billing arrangement.

    5. 1098 – T Formal Billing Arrangements SU bills only an employer SU bills only a governmental entity. SU bills only an institutional third party, as defined in published guidance by the IRS. A N D SU does not maintain a separate financial account for the student.

    6. 1098 - T Qualified Tuition and Related Expenses Defined Tuition and fees a student must pay to be enrolled at or attend an eligible educational institution.

    7. 1098 - T Not Considered Qualified Amounts paid for any course or other education involving sports, games or hobbies, unless course is part of student’s degree or is taken to acquire or improve job skills. Charges for rooms, board, insurance, transportation and similar personal, living or family expenses.

    8. 1098 - T Academic Period We must file Form 1098-T for each student enrolled for any academic period (quarter) in 2003. Enrollment is based upon Stanford’s definition, or may be: 30 days after first day of academic period. IPEDS report date. Date determined by a state or other governing body.

    9. 1098 -T Due Date January 31 to the student. March 31 to the IRS, electronically.

    10. 1098 - T Reporting Options Must make irrevocable choice to report: Tuition when received (Box 1) Tuition when billed (Box 2)

    11. 1098 - T Qualified Tuition & Expenses Amount of QT&E actually received or billed less any reimbursements made during the calendar year that relate to payments received for the same calendar year. Payments received apply to QT&E unless otherwise stated in a scholarship or grant. Any reimbursement or refund is generally treated as a refund of QT&E.

    12. 1098 – T Case 1 In August, student is billed $10,000 for QT&E and $6,000 for room & board for Fall Quarter. Student pays $11,000 in August. In September, student reduces units. In September, University issues a $5,000 credit for unused QT&E. University applies $5,000 credit to unpaid charges.

    13. 1098 – T Case 1 Result $11,000 payment originally treated $10,000 QT&E. $5,000 adjustment applies to QT&E. Therefore, report $5,000 as QT&E on 1098-T (Box 1)

    14. 1098 – T Case 2 Same as Case 1, except student pays in full and receives cash refund.

    15. 1098 – T Case 2 Result Same as Case 1: Report $5,000 as QT&E.

    16. 1098 - T Refund When refunding current year’s payments, reduce Box 1 amount. When refunding prior year’s payments, report Box 3.

    17. 1098 - T Scholarships & Grants Report amount of any scholarships or grants for the payment of student’s cost of attendance that Stanford administered and processed during the calendar year in Box 4.

    18. 1098 - T Reductions to Scholarships & Grants If current year scholarship is reduced, net the reduction against current year scholarships in Box 4. If a prior year scholarship is reduced in the current year, report such amount in Box 5.

    19. 1098 - T Amounts Billed or Received Relating to Future Year Include amounts billed or received relating to future years in the year billed or received. Indicate in Box 6 that an amount reported in Box 1 or 2 relates to an academic period that begins in January through March.

    20. 1098 – T At Least Half Time Student Check Box 8 if student is at least half-time student during any academic quarter of the calendar year. Half time is defined by institution, but must equal or exceed standards set by Department of Education. 6 Units for undergraduates; 8 Units for graduates, except in summer, when all RA’s & TA’s are deemed half time.

    21. 1098 - T Graduate Student Status Check Box 9 if student was enrolled in program leading to a graduate level degree, certificate or credential. (would include Co-Terms & MLA’s)

    22. 1098 – T Case 3 In August, Stanford bills student for $10,000 in QT&E and $6,000 for Room & Board for Fall Quarter. Student pays $11,000 in August. In September, student drops to half time. Stanford adjusts student account by $5,000 and applies credit to outstanding bill.

    23. 1098 – T Case 3 - continued In December, Stanford bills student $10,000 in QT&E and $6,000 for Room & Board for Winter Quarter. In January, student pays $16,000. In January, student drops to half time and Stanford adjusts $5,000, but does not issue refund.

    24. 1098 – T Case 3 - continued In March, Stanford bills student $10,000 for QT&E and $6,000 for Room & Board for Spring Quarter and applies $5,000 credit from Winter Quarter to account. In April, student pays $6,000. In June, student pays all debts and graduates.

    25. 1098 – T Case 3 Result For 2003, Stanford reports $15,000 in QT&E billed. ($10,000 for Fall, minus $5,000 credit, plus $10,000 for Winter) Must also mark Box 6, since some of the billed amount related to a future year. For 2004, Stanford reports $10,000 in QT&E billed and $5,000 in Box 3 – adjustments made for a prior year.

    26. 1098 - T Addresses Should be permanent address of the student. OR Temporary address if permanent address is not known.

    27. 1098 - T Tax Payer ID # Must appear on the form. Must be correct. Subject to penalties unless we act in responsible manner.

    28. 1098 - T Request TIN Solicit TIN by sending student a W-9S form by December 31. If student does not furnish TIN or provides incorrect TIN, the penalty ($50) transfers to the student.

    29. 1098 - T Request by Non-Resident Alien Stanford must produce 1098-T for Non-Resident Alien by the later of 30 days following the request, or the regular January 31 due date.

    30. 1098 - T Disclosures to Recipient Important disclosures to recipient are required and can be provided by sending out the IRS version of the 1098-T complete will all its annotations.

    31. 1098 - T Electronic Furnishing of Statements Consent of student must be obtained.

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