Form 1098-T reports qualified educational expenses charged and scholarships and grants awarded to students enrolled in courses at Liberty University during the calendar year for which they receive academic credit.
The information reported on the 1098-T form helps students evaluate whether he or she is eligible for the "Lifetime Learning Credit" or the "Hope Credit." IRS Publication 970 on "Tax Benefits for Higher Education" provides additional information on these credits. Taxpayers file for these credits using IRS Form 8863.
Liberty does not issue a 1098-T form if the amount of scholarships and grants equals or exceeds qualified educational expenses, if the student is a nonresident alien, or if the student is enrolled in not-for-credit courses.
See IRS Forms and Publications for more details. For other questions regarding the 1098-T form, please e-mail firstname.lastname@example.org, or refer to a list of frequently asked questions.
Attaching Form 1098-T to your Tax Return
You are not required to attach IRS Form 1098-T to your tax return. The primary purpose of the IRS Form 1098-T is to let you know that Liberty University has provided required information to the IRS to assist them in determining who may be eligible to claim the tuition and fee deduction or an education credit.
Explanation of Your IRS Form 1098-T Tuition Statement
The IRS Form 1098-T is an informational form filed with the IRS.
The IRS Form 1098-T that you received reports amounts billed to you for qualified tuition and related expenses.
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.
There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming an education tax benefit is a voluntary decision for those who may qualify.
Questions regarding IRS Form 1098-T
Please contact the IRS or your tax consultant for further information. IRS Publication 970 on Tax Benefits for Higher Education provides additional information on education credits and deductions. Please refer to the IRS site websites below for more information:
To view a detailed listing of the transactions that comprise the amounts on the 1098-T form, log into ASIST and navigate to Student --> Student Account --> Tax Notification and then enter in the correct tax year.
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 University is choosing to report qualified tuition, waivers and related expenses billed during the calendar year, rather than the amount that was paid.
The amounts shown in Box 2 for qualified tuition, waivers and related expenses billed during the calendar year may represent an amount that is different from the amount actually paid during the calendar year, although for some students the amounts will be the same. 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.
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.
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. If you are enrolled in a graduate program, you are not eligible for the Hope credit, but you may qualify for the lifetime learning credit.