The tax forms for college expenses are referred to as form 1098-T. Nichols College typically mails the form during the last week of January. Forms are in the name of the student.
The information listed below is available in a Word document: 1098-T for 2007 Explanation.
The Form 1098-T provides information that may help students and their families complete Form 8863-Education Credits, Form 8917-Deduction for Tuition and Fees, or take advantage of other education related tax benefits.
Recipients of 1098-T's are encouraged to consult with a Tax Advisor and to refer to IRS publications for help with eligibility, limits, and computations related to education deductions and credits. BY LAW, NICHOLS COLLEGE CANNOT OFFER TAX ADVICE. One particular source, IRS Publication 970, Tax Benefits for Education, may be of interest. Free copies are available at Conant Library or may be downloaded from the IRS website [http://www.irs.gov.] Publication 970 items of interest include:
The IRS prescribes very specific instructions that Institutions must follow when completing Form 1098-T. Specifically, we must report all activity on your account for the CALENDAR YEAR 2007. In many cases, values on the 1098-T may not directly transfer to Form 8863. There may be a disconnect between:
Your Tax Advisor will be able to answer your questions and provide guidance for claiming benefits. You should also refer to your monthly "Statement of Account" received from the College for specific values.
General explanations of what goes in each BOX # may be found on the back of the 1098-T. Information specific to Nichols is given below. You may also contact the Business Office at 508-213-2288.
BOX 1, BOX 3, and BOX 10 are all BLANK.
BOX 2: Represents the Net Amount Billed to your account in Calendar Year 2007 for Qualified Tuition and Related Fees (QTARF) [excluding amounts in BOX 4.]
QTARF at Nichols College consist of:
QTARF at Nichols College DOES NOT include:
Please note: Under Section 25A of IRC, a taxpayer may claim an education tax benefit only with respect to QTARF ACTUALLY PAID during the Calendar Year (after refunds, reimbursements, and non-taxable scholarships.) It is possible that a taxpayer may not be able to claim an education benefit with respect to the entire amount billed.
BOX 4: Represents the Net Adjustment to a QTARF amount that was originally included in a prior year's 1098-T, but was adjusted during 2007. This may affect the amount of allowable education tax benefits in the prior year.
BOX 5: Represents the Net Amount of Scholarships, Grants, and Awards credited to your account during Calendar Year 2007. Loans of all types are NOT included.
Please note: certain outside scholarships and grants may not be reported because Nichols does not administer or process them. However, these amounts may reduce the amount of allowable tax benefits by a taxpayer.
BOX 6: Represents the Net Adjustments to Scholarships items that were originally included in a prior year's 1098-T, but were adjusted during 2007. This may affect the amount of allowable education tax benefits in the prior year.
BOX 7: A Check means that any QTARF billed to your account in Calendar Year 2007 relates to an academic period beginning January-March of 2008. At Nichols, Spring 2008 charges are normally assessed in December 2007.
BOX 8: A Check means you were enrolled for at least half the full-time load in ANY term during the Calendar Year. At Nichols, anyone enrolled for six (6) or more credits in any one of the Spring, Summer, or Fall 2007 terms meets this criteria.
BOX 9: A Check means you were enrolled in a MBA level class sometime during Calendar Year 2007.