Recommendations for Completing Form 1098-T
November 15, 2013
As the end of the year approaches, colleges and universities are gearing up for the annual preparation and filing of IRS Forms 1098-T. Each year, NACUBO receives many inquiries from members seeking to accurately report student account information to students and families, as well as to the Internal Revenue Service, as required.
To help simplify perennial areas of confusion, as well as promote common industry practices in higher education, we have developed Advisory Report 2013-2. The report—the product of a task force comprising members from NACUBO's Student Financial Services and Tax Councils—has been reviewed by dozens of campus student financial service administrators. It represents our best effort at clarifying the two most challenging components of the form: which types of institutional charges to report (and not report) in Boxes 1 or 2 (amounts paid/charged for qualified tuition and related expenses) and how to report grant aid in Box 5.
The report is intended to help institutions streamline their approach to the annual information reporting requirement and serve as a reference for staff involved in preparing Forms 1098-T. NACUBO is engaged in several efforts to improve the quality of the information available to students and their families to help them understand and claim education tax credits. Encouraging greater consistency across institutions is one step toward this goal.
Last month NACUBO published another report about IRS Form 1098-T that focuses on the notices of proposed fines many colleges and universities have received. NACUBO continues to work with outside counsel to advocate within the IRS for a broad resolution to that issue and will report any significant developments.
Vice President, Regulatory Affairs
Director, Tax Policy
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