As an eligible educational institution, Rice University is required to report reportable transaction information to the IRS, as well as, furnish a Tax Form 1098T to each student having a reportable transaction posted to their account during a tax year. Students, or the person who can claim them as a dependent, may be able to claim an education credit on Form 1040 or 1040A for the qualified tuition and related expenses during the calendar year. To see if you qualify for the credit, see Pub. 970, Tax Benefits for Education; Form 8863, Education Credits; and the Form 1040 or 1040A instructions; each located at www.irs.gov.
The IRS provides the option for universities to report either “payments received” in Box 1, or “Amounts billed” in Box 2, but not both. Rice University reports qualified tuition and related expenses that were billed during the tax year (Box 2) and scholarships and grants.
Tax Form 1098-T will be available to students by January 31st and will provide the following information:
- A summarization of the total amount of qualified tuition and fees
- Summarization the total amount of scholarships and grants received
- Indication if the student attended at least half-time during the calendar year
- Indication if the student was a graduate student
- Indication if some of the qualified tuition, scholarships and grants were adjusted from the previous reporting year
Tax Form 1098-T will not be printed and mailed, or filed for:
- Students whose entire qualified tuition and related expenses were waived or paid for with a grant or scholarship
Students whose entire qualified tuition and related expenses were paid under a “formal billing arrangement” where the institution:
- bills only an employer or governmental entity, and
- does not maintain a separate financial account for the student
- Nonresident aliens, except upon request
- The noncredit courses in which a student is enrolled, even if the student also is enrolled in credit courses
For information and assistance in the calculation of any applicable education tax credit or in the preparation of your income tax return, we recommend you contact a tax preparer, refer to IRS Publication 970 (Tax Benefits for Higher Education) or contact the IRS at (800) 829-1040.