Taxes & Tax Credit

When filing for taxes, you (or the person who claims you as a dependent) may be eligible to include educational expenses as a write off. You may even receive credits toward your return that are specific to education.  

See also:

Form 1098-T: Details of Your Education Expenses

The 1098-T Form shows your qualified educational expenses, and scholarships and grants received, from a particular calendar year. This will help you determine if you are eligible for the "Lifetime Learning Credit" or the "Hope Credit" when filing your taxes. The form will automatically be sent to you, according to the mailing preference you selected in FCI no later than January 31

IRS Publication 970 on "Tax Benefits for Higher Education" provides additional information on education credits. Taxpayers file for these credits using IRS Form 8863.

Liberty does not issue a 1098-T form if:

  • the amount of your scholarships and grants equals or exceeds qualified educational expenses 
  • you are a nonresident alien
  • you are enrolled in not-for-credit courses
  • you didn’t provide us with your Social Security Number (SSN)

See IRS Forms and Publications for more details. If you didn't receive your 1098-T form, it may have been sent to an old or incorrectly provided address.

Qualified & Unqualified Expenses

Qualified charges include:

  • Tuition
  • Mandatory fees

Unqualified charges include:

  • Expenses for any course or other education involving sports, games, or hobbies
    • Unless the course or other education is part of the student's degree program. 
  • Charges and fees associated with room, board, student activities, athletics, insurance, books, equipment, transportation, and similar personal, living, or family expenses

Details of 1098-T Form

To view a detailed listing of the transactions that make up the amounts on the 1098-T form, log into ASIST and navigate to Student > Student Account > Tax Notification.

  • Box 1 of Form 1098-T - Payment Amounts Received
    • This box will always be empty because Liberty chooses to show the amounts billed (in Box 2) instead of the amounts paid. 
  • Box 2 of Form 1098-T - Amounts Billed for Qualified Tuition and Related Expenses
    • Reports the qualified tuition, waivers and related expenses billed to you during the calendar year. Liberty shows the billed amount, which is not necessarily the paid amount.
    • Under section 25A of the Internal Revenue Code and the associated regulations, a taxpayer may take a tuition and fee deduction or claim an education tax credit only with respect to qualified tuition, waivers and related expenses actually paid during the calendar year.
  • Box 4 of Form 1098-T – Adjustments Made for a Prior Year
    • Reports adjustments made to qualified tuition and related expenses reported on a prior year Form 1098-T in Box 2.
    • The amount reported in Box 4 represents a reduction in tuition billed during a prior calendar year. For example, if you were billed for Spring semester classes in December and withdrew from classes in January, Box 3 reports the decrease in billed tuition due to the withdrawal. The amount reported in Box 4 for adjustments to qualified tuition and related expenses may reduce allowable education credit you may claim for the prior year. See IRS Form 8863 or IRS Publication 970 for more information. 
  • Box 5 of Form 1098-T – Scholarships or Grants
    • Reports the total amount of scholarships, discounts or grants administered and processed by Liberty University Financial Aid during the calendar year.
  • Box 6 of Form 1098-T – Adjustments to Scholarships or Grants for a Prior Year
    • Reports adjustments made to scholarships or grants reported on a prior year Form 1098-T in Box 4.
    • The amount reported in Box 6 for adjustments to scholarships or grants may affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. See IRS Form 8863 for how to report these amounts.
  • Box 7 of Form 1098-T, if checked
    • Shows whether the amount in Box 2 includes amounts billed for an academic semester/quarter beginning January – March of the next calendar year. For example, if you registered for the upcoming Spring semester during November or December, this box will be marked.
  • Box 8 of Form 1098-T
    • Shows whether you are considered to be carrying at least one-half the normal full-time workload for your courses of study for at least one academic period during the calendar year.
  • Box 9 of Form 1098-T
    • Shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential.

IRS Filing

The primary purpose of the 1098-T form is to let you know what your educational expenses were for the year. Liberty University is required to provide this information to the IRS to assist them in determining if you are eligible to claim the tuition and fee deduction or an education credit.

You, or the person who may claim you as a dependent, may be able to take either the tuition and fees deduction or claim an educational credit on Form 1040 or 1040A for the qualified tuition and related expenses that were actually paid during the calendar year.


Have questions about taxes?  Please contact a tax professional for assistance.

For questions regarding Form 1098-T, please e-mail studentaccounts1098@liberty.edu.