Education Tax Credit Information

IRS Form 1098-T

The following information is provided for general assistance related to the IRS Form 1098-T but should not be construed as tax advice.  Please consult IRS Publication 970 or contact a tax advisor if you need further assistance.

The 1098-T form is used to assist students and families in determining if you are eligible for an Education Tax Credit or a Tuition and Fees Deduction.  Brown University is required to produce the 1098-T by IRS regulations.  The 1098-T form is provided each year on or before January 31.  The information contained in the 1098-T will help you determine if you may claim one of the two tax credits, the American Opportunity Credit or the Lifetime Learning Credit, or a Tuition and Fees Deduction.  To claim either credit, the 1098-T is provided to assist you in preparing IRS Form 8863 or IRS Form 8917 respectively. 

Students can access their 1098-T at http://payment.brown.edu and they may give access to their authorized users.  Please visit this page to retrieve forms from tax years 2012 forward.

Electronic 1098-T Statement Option:  To continue to promote our paperless incentives, the Bursar Office is offering all students and their Authorized Users an electronic 1098T form option for IRS federal reporting of the education tax credit benefit.  By consenting to receive an electronic form you will be able to view, print, save, and email the form when the form is produced.  1098-T Statements are available on or before January 31 for the prior tax year.  A notification is sent to each student and their authorized user when the form is made available.  Log into http://payment.brown.edu and under the 1098T tab, select Accept Consent.  Students may also allow their Authorized User the same electronic access by editing this information under the Authorized User tab.  By consenting to receive an electronic 1098-T form, you will not receive a paper form through the mail.  Your consent will be on record until you are no longer enrolled as an active student.  Students who do not select the electronic option will receive a paper 1098-T form mailed to the address listed on the University's records.  Students are also able to view and print their 1098T statement from their Banner self-service account at: https://selfservice.brown.edu/

1098-T and Social Security Numbers:  Per state, federal and IRS guidelines, Brown University will request that all students provide their Social Security Number (SSN) for reporting purposes.  Having an accurate SSN on tax forms supports the tax deduction that a student or family may claim for qualified educational expenses on both federal and state income tax returns.  Failure to provide Brown with an SSN may result in a registration hold and/or being fined by the IRS in accordance with Internal Revenue Code Section 6723

1098-T Data:  The data reported on the 1098-T is based on the tax year (not the academic year).  Box 2 displays the total amount the student was billed for qualified tuition and related expenses in the tax year.  Box 5 displays the total amount of any scholarships and grants administered and processed during the tax year for the payment of student's cost of attendance.   NOTE:  Payments are not reported on this form.

Tax Credits:  The Taxpayer Relief Act of 1997 established two educational tax credits, the American Opportunity Credit and the Lifetime Learning Credit.  To claim either credit, the 1098-T is provided to assist you in preparing IRS Form 8863

Tuition and Fees Deduction:  This deduction is based on adjusted qualified education expenses paid in an eligible postsecondary educational institution.  Use IRS Form 8917 to claim this deduction.   

Resources:  Brown University will not provide individual income tax advice.  We suggest that you contact your tax professional with any questions after reviewing this information and these resources.

IRS Tax Publication 970:  Tax Benefits for Education

Comparison Chart

NASFAA Tax Breaks for Higher Education

 

Taxation for International Students

Section 117 of the Internal Revenue Code exempts scholarships from taxation as long as the scholarship does not exceed the amount of eligible tuition charges.  Eligible tuition charges include tuition and fees, books, supplies, and equipment (not room and board).  

Brown University is required to withhold tax on excess scholarship equal to any scholarships, fellowships, grants, and financial aid in excess of eligible tuition charges. International students are subject to a 14% federal and 3.75% state withholding rate on the taxable portion of the scholarship/fellowship/grant.  This tax will be charged to the student account.  The "excess scholarship tax" is charged each term before the start of classes.  Students are required to pay the tax liability as soon as the charge appears on their account. 

Taxation may be avoided if the student's country of 
​residence has a tax treaty with the U.S which exempts their scholarship from taxation (reference Publication 901 for U.S. Tax Treaties).  Students who claim that part or all of the scholarship is exempt from taxation because of a tax treaty must enter their specific data pertaining their immigration and tax status into a computerized database, Foreign National Information System (FNIS).  Unless this information is entered and submitted in FNIS, an accurate assessment of a student's tax status and possible tax treaty eligibility cannot be made and taxes will be assessed.  


Brown University is required to report the excess to the Internal Revenue Service (IRS) on Form 1042-S.  International students who receive taxable income while in the United States may need to file a 1040NR or a 1040NR-EZ.  Please visit the IRS website for details.