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.
What is a 1098-T?
The 1098-T is a statement that colleges and universities are required to issue to certain students. It provides the total dollar amount paid by the student for what is referred to as qualified tuition and related expenses in a single tax year. The information on form 1098-T can be used to help you determine if you are eligible for education tax credits (the American Opportunity Tax Credit and Lifetime Learning Credit) when filing a U.S. tax return.
The 1098-T form is not meant to be an indicator of income. Form 1098-T does not indicate whether you received a taxable scholarship or fellowship. It is the sole responsibility of the student to report and pay taxes on the taxable portion of any scholarship, fellowship, or grant that is received. For example, you may need to report taxable income if the total amount of your grants or scholarships received during the year exceeded the amount you paid for qualified education expenses in that year. Please refer to IRS Publication 970 and consult with your tax preparer if you have additional questions regarding how the 1098-T relates to your specific tax preparation.
What am I supposed to do with the 1098-T form?
The purpose of the form is to assist with claiming the American Opportunity or the Lifetime Learning education tax credits. To claim either credit, the 1098-T is provided to assist you in preparing IRS Form 8863 or IRS Form 8917 respectively.
How and when will I receive the 1098-T Statement?
- Select Accept Consent in the 1098-T popup window that appears after login.
- If you do not see the popup window, or you would like to change your consent option, select "Consents and Agreements", select Change, and select Accept Consent.
- Consent remains on record for the remainder of your enrollment at Brown.
- Students can determine whether their authorized user has access to view the 1098-T statement. Select Authorized User tab, select Edit, and update the permissions shown n the popup window.
Students who do not select the electronic option will receive a paper 1098-T form mailed to the permanent address listed on the University's records.
Why didn’t I receive a 1098-T?
Not all students will receive a IRS Form 1098-T. According to IRS guidelines, a 1098-T statement will not be provided to non-resident aliens, international students, or in cases where qualified tuition and related expenses are entirely waived or paid entirely with scholarships.
How do I provide my social security number?
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.
If you have not previously provided your Social Security Number, login to Banner Self Service, select the Student Tab, select the Student Account link, select the Tax ID Number / SSN Link, enter your Social Security Number in the boxes provided, then select Submit.
Description of data reported on the IRS 1098-T Tuition Statement
Box 1 – Payments received for qualified tuition and related expenses (QTRE) – total payments received by Brown University in the applicable calendar year from any source for qualified tuition and related expenses less any reimbursements or refunds made during the calendar year that relate to those payments received during the calendar year. Qualified tuition and related expenses include required tuition, fees, and course materials. Charges and fees for room, meals, insurance, medical expenses, transportation, and similar living/personal/family expenses are not considered qualified tuition and related expenses.
Box 1 reports amounts paid for QTRE during the calendar year (January to December), as opposed to the academic year. Please be advised that amounts paid do not represent amounts billed by the University during the calendar year. For example, tuition for the spring term is typically billed in November/December, so a student may have paid tuition for the spring before December 31, despite the term not beginning until January. The tuition paid for the spring in this case will be reported in Box 1 of the form issued for the calendar year when payment was made.
Box 2 – Blank
Box 3 – Change in reporting method: Any changes to the IRS reporting method will be indicated in Box 3. NOTE: In 2018, there was a change in the IRS reporting method to begin reporting based on the payments received for qualified tuition and related expenses. Prior to 2018, the IRS reporting method was based on amounts billed for qualified tuition and related expenses.
Box 4 – Adjustments made for a prior year – The amount in this box reflects any reduction made for a prior year for qualified tuition and related expenses that were reported on a prior year 1098-T. See IRS Form 8863 or IRS Publication 970 for more information on reporting a reduction in your education credit or tuition and fees deduction.
Box 5 – Scholarships or grants – This box contains the sum of all scholarships or grants Brown University administered and processed to the student’s account during the calendar year.
Box 5 may be greater than box 1 if the amount of grants and scholarships posted to the student account is greater than the amount paid for qualified tuition and related expenses (QTRE) during the tax year. The amount shown in box 1 is limited to the total amount of QTRE charged in the calendar year. In some cases, the charges for the prior spring/winter terms may have posted in the prior tax year. To determine if this is taxable please refer to IRS Publication 970.
Box 6 – Adjustments to scholarships or grants for a prior year. An amount reported in Box 6 represents a reduction in scholarships or grants reported for a prior calendar year. The amount in Box 6 may affect any allowable education credit you claimed for a prior year. See IS Form 8863 for how to report these amounts or consult a tax expert to determine if you may need to recalculate your tax benefit for that prior year.
Box 7 – This box will be checked if the amount reported in Box 1 includes payments for an academic period beginning January – March of the following calendar year. 2019. For example, tuition paid in November or December 2020 for a Spring semester beginning in January 2021. See IRS Publication 970 for how to report these amounts.
Box 8 – A check in this box indicates that you have been enrolled at Brown University at least half-time during the tax reporting year of this 1098-T.
Box 9 – This box will be checked if you are a student enrolled in a program leading to a graduate or professional level degree.
Box 10 – This box is not applicable to Brown University; therefore, it will be blank.
1098-T Related 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.
Internal Revenue Service (800) 829-1040 or TTY (800) 829-4059
Taxation for International Students
International students who are recipients of a Brown University Scholarship and/or any outside scholarships should review this important information regarding the potential tax implications.
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.
To comply with federal regulations, Brown University is required to withhold tax on excess scholarship amounts equal to any scholarships, fellowships, grants, and financial aid in excess of eligible tuition charges. Eligible tuition charges include tuition and fees, books, supplies, and equipment (not room and board). International students are subject to a 14% federal and 3.75% state withholding rate on the taxable portion of the scholarship/fellowship/grant. This“excess scholarship tax” will be charged to the student account at any point throughout the term, whenever scholarship exceeds the qualified tuition and fee charges. 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.
Please refer to the Office of International Student and Scholar Services Taxes website for additional resources and information.