1098-T Tax Form

Starting with the tax year 2018, the federal law has changed the reporting requirement for each university.  The university must report payments received for qualified tuition and related expenses.  We also report any scholarships/grants you received (free money not required to be paid back) on the 1098-T form (Box 5). We will now report out of pocket payments received (Box 1) on the 1098-T form and not charges billed (Box 2). This includes cash, check, credit card, and loan payments.

What is a 1098-T?

The 1098-T is a tax form that Abraham Baldwin Agricultural College provides to the student to file federal income taxes. It is used for the purpose of determining a student's eligibility for education tax credits.

What is reported in Box 1 - Payments Received?

Due to a change to institutional reporting requirements under Federal Law, Abraham Baldwin Agricultural College has started reporting QTRE (Qualified Tuition and Related Expenses) in Box 1 of the 1098-T for tax year 2018 moving forward. Box 1 only represents amounts paid for qualified tuition and related expenses. It does not include payments made for room and board, insurance, health fees, parking permits, and books.

Why is Box 2 blank?

The IRS no longer allows institutions to report in Box 2 (Tax Deductible Amounts Billed).

What is reported in Box 4 - Adjustments made for a prior year?

Box 4 (Adjustments made for a prior year) reflects any refunds of tuition and fees billed in a previous tax year that you may have received in the current tax year. The amount in Box 4 may reduce any allowable education credit you claimed for a prior year.

What is reported in Box 5 - Scholarships and Grants?

This box contains the sum of all scholarships and grants ABAC administered and processed for the student’s account during the calendar year. Scholarships that pay for tuition (qualified scholarships) as well as for housing, books, and other expenses (non-qualified scholarships) will be included in this amount. Tuition waivers and payments received from third parties that are applied to student accounts for educational expenses are included in this box.

What is reported in Box 6 - Adjustments to scholarships or grants for a prior year?

Decreases or refunds of scholarship amounts related to scholarships reported in a previous year are included in this box. This amount is reported as a positive number per IRS requirements. However, it is actually a decrease in the amount that was reported on a prior year 1098-T.

What is reported in Box 7 - Payments for next year?

This box will be checked if the amount reported in Box 1 includes Payments Received and posted to a student account in the current year that pays for a semester beginning in the next calendar year. For example, payments received in December 2017 for the Spring 2018 Academic term will be reported on a 2018 1098-T.  Box 7 will be checked to indicate that this is the case.

What is reported in Box 8 - Student is at least half time?

A check in this box indicates that you are or have been enrolled at ABAC at least half-time for at least one semester during the calendar year.

If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the American Opportunity credit. You do not have to meet the workload requirement to qualify for the Lifetime Learning credit.

Each institution must choose whether to report payments received or amounts billed for qualified tuition and related expenses. Abraham Baldwin Agricultural College has chosen to report amounts billed for qualified tuition and related expenses (Box 2).  We also report any scholarships/grants you received (free money not required to be paid back to include Out of State Tuition Waivers as they are considered a scholarship) on the 1098-T form (Box 5). We do not report out of pocket payments received (Box 1) on the 1098-T form.  This includes cash, check, credit card, and loan payments.  For more information about the deduction or credit see IRS Publication 970, Tax Benefits for Education [PDF], Form 8863, Education Credits, and the Form 1040 or 1040A instructions.

Following is an explanation of the information ABAC reports:

1. Filer’s Name and Address box: The institution’s address (Student Accounts address) is printed in this box.
2. Filer’s Federal Identification Number box: The institution’s FEIN and a contact phone number (229-391-4924) are printed in this box. Students can contact this phone number if they have any questions pertaining to their Form 1098-T.
3. Student’s Social Security Number box: The student’s social security number is printed in this box. Only the last four digits are printed on the form. If the student did not provide a SSN, there will be no SSN reported.
4. Student’s Name and Address boxes: The student’s name and mailing address (MA) are printed in these boxes (if the mailing address field is not populated in Banner, the address hierarchy looks for permanent address.)
5. Box 2: This box contains the total amount that was billed during the calendar year for qualified tuition and related expenses, which is defined as “tuition and fees that a student must pay to be enrolled at or attend an eligible educational institution.”
6. Box 4: This box contains any billing adjustments that were made during the calendar year for a prior calendar year.
7. Box 5: This box contains the total amount of scholarships/grants received during the calendar year for the payment of the student’s costs of attendance.
8. Box 6: This box contains any scholarship/grant adjustments that were made during the calendar year for a prior calendar year.
9. Box 8: This box is checked if the student was enrolled in 6 or more credit hours in the fall semester, spring semester, and summer semester.
10. Box 9: This box is checked if the student was a graduate student.

Tax Information

Hope Scholarship Credit became effective January 1, 1998, and allows up to a $1,500 maximum tax credit per year for the first two years of post secondary education for each individual student. The Lifetime Learning Credit began July 1, 1998, and allows up to a $2,000 cumulative maximum tax credit per year for all students in a taxpayer’s family.

Qualified Tuition and Related Expenses

Qualified tuition and related expenses are tuition and fees (except for Health Service, Transportation, and Student Insurance fees) a student must pay to be enrolled at or attend Abraham Baldwin Agricultural College. The following are not qualified tuition and related expenses:

• Charges and fees for room, board, student insurance, health services, transportation, and similar personal, living, or family expenses.
• Amounts paid 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 or is taken to acquire or improve job skills.