Tax Benefits for Education

In January of each year, the University of Wisconsin System provides an IRS Form 1098T for all students who had qualified tuition and other related educational expenses paid during the previous calendar year. The form is made available electronically or mailed by the end of January.

Yes.  Section 6050S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires the university to file information returns to assist taxpayers and the IRS in determining the amount of qualified tuition and related expenses (qualified expenses) for which an education tax credit is allowable under section 25A (American Opportunity and Lifetime Learning education tax credits), as well as other tax benefits for higher education expenses.

The IRS instructs institutions to report payments received (Box 1).  Prior to the 2018 calendar reporting, the University of Wisconsin reported qualified tuition and related epenses that were billed during the tax year (Box 2). Box 2 is no longer a reporting option.

Qualified tuition and related expenses refer to tuition and required fees, such as segregated fees and course fees, that a student must pay to be enrolled at or attend an eligible educational institution. Tuition waivers and remissions are considered reductions to qualified tuition and expenses. Qualified expenses do not include: housing, food, books, student health fees, recreational sports fees, or transportation expenses.

Not necessarily. The University is required to provide the “payments received” and “scholarship or grant” figures to help you determine the amount of qualified expenses you can claim on your IRS Form 8863. Per Internal Revenue Code Section 25A, taxpayers may claim an education tax credit only with respect to qualified tuition and related expenses paid (not billed) during the calendar year. You may need to review your payment records to determine the actual qualified expenses paid. Qualified amounts paid by student loans may count as payments eligible for these purposes. Scholarships and grants received may reduce your eligible payment amounts. See IRS Publication 970 for information to determine your qualified expenses paid amount.

This information may be found on your campus’s Student Information Systems on your tuition account or online billing statement history.  If you are a parent looking for this information for a student, lease ask your student to access this information for you.

This box shows the amount of any tuition and fees reductions in the current calendar year for charges that were billed in a previous calendar year.  It also shows reimbursements or refunds of qualified tuition and related expenses made in the current calendar year that relate to payments received that were reported for any prior year after 2002.

The figure in Box 5 – Scholarships or Grants includes scholarships, grants and, if applicable, payments made by a third party under a formal billing arrangement (i.e., outside scholarships, employer provided educational assistance [regardless of taxability], military, etc.) which have been administered by the University of Wisconsin-Madison. If you received other forms of outside scholarships and grants not administered by the University of Wisconsin-Madison, it is your responsibility to adjust the figure accordingly. Third party payments do not include payments made by a parent or other individuals, or payments made through AmeriCorps.

Grants awarded to students in 2020 & 2021 as part of the CARES/HEERF Act will not be included on your 1098T.

The University of Wisconsin-Madison does not determine whether your education benefits are being taxed by your employer. As such, scholarships and grants are increased by 100% of any employer provided payments under a formal billing arrangement, and it is up to the student to adjust their qualified tuition and related expenses accordingly based on the taxability of their employer benefits.

If applicable, this box shows the amount of any scholarship, grant, and third party reductions in the current calendar year for aid that was credited in a previous calendar year.

Box 8 will not be checked if you were not enrolled at a half-time status during an academic period which is either enrolled or billed during the calendar year. University of Wisconsin-Madison checks this box if you were half-time or more for at least one term beginning during the year. This information might be important in determining certain tax credits.

Box 9 will be checked if you were enrolled as a graduate student for at least one academic period during the calendar year. If Box 9 is checked, it alerts the IRS to the fact that the American Opportunity Credit is not allowable for the student’s qualified expenses because the student is beyond the first four years of post-secondary education and that the Lifetime Learning Credit may be allowable.

No. The address shown on the 1098T form is irrelevant for IRS income tax filing purposes.

Reporting Method Change

Prior to 2018, the 1098T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) BILLED to your student account for the calendar (tax) year. Beginning with tax year 2018, University of Wisconsin-Madison will report in Box 1 the amount of QTRE you PAID during the year. This is due to a change to institutional reporting requirements mandated by federal law.

Impact of the Reporting Change

The impact of this change for tax year 2018 is that the amount reported in Box 1 or Box 5 may not include certain Spring 2018 payments, if they were processed in the year that ended in December 2017. You should use the information on the Form 1098T in conjunction with your own payment records to complete your individual tax return. As a reminder, all tuition account activity is available in your MyUW Student Center under the Tuition Account Summary. If you have questions about how to compute an education tax credit, consult your tax professional or refer to the IRS Publication 970.

To access the W9-S form, log into to your MyUW Student Center.  Within the Student Center select the Financial Account tile.  On the left-hand side select eForms and select “Submit W9-S”.

• If you are providing an SSN or ITIN, please provide the nine-digit ID in the Taxpayer ID field.
• If you are not providing an SSN or ITIN, select NO next to the “I have an ITIN or SSN”.  After this has been updated, you will then need to indicate either that you will not be filing a U.S. income tax return, or that you do not wish to provide your taxpayer identification number.

Once the appropriate selection has been made, you will need to update the acknowledgement and select ‘Submit’ to complete the form.

To access the W9-S form, log into to your MyUW Student Center.  Within the Student Center select the Financial Account tile.  On the left-hand side select eForms and select “Submit W9-S”.

• If you are providing an SSN or ITIN, please provide the nine-digit ID in the Taxpayer ID field.
• If you are not providing an SSN or ITIN, select NO next to the “I have an ITIN or SSN”.  After this has been updated, you will then need to indicate either that you will not be filing a U.S. income tax return, or that you do not wish to provide your taxpayer identification number.

Once the appropriate selection has been made, you will need to update the acknowledgement and select ‘Submit’ to complete the form.