RHSHS 1098-T Student Tax Information
What is the IRS Form 1098-T?
The Taxpayer Relief Act (TRA) of 1997 created tax benefits for students and families who are paying for higher education or repaying student loans. The IRS Form 1098-T Tuition Statement is a form filed with the Internal Revenue Service (IRS) by the Reading Hospital School of Health Sciences (RHSHS) each January for the previous year (January 1 to December 31).
The IRS requires that RHSHS provides 1098-T data for any student with payments received for qualified tuition and fees or administered grants & scholarships during the previous year. It provides the total amount paid for “Qualified Tuition and Related Expenses” (QTRE) to assist students, or their parents, in determining their eligibility for certain educational tax credits and deductions such as the American Opportunity Tax Credit or the Lifetime Learning Credit.
When will I receive my Form 1098-T?
The Form 1098-T will be available online or mailed to the student’s permanent address of record by January 31st each year for students who meet the Internal Revenue Services’ reporting requirements.
What information is reported on my 1098-T?
RHSHS reports qualified payments received in the previous year for the following transactions posted to a student’s account:
- Payments received by cash, check, credit/debit card for tuition & qualified fees
- Payments made from federal or private loans.
- Payments made with scholarships or grants from any source.
- Private educational loans
- Third party payments made by sponsors on behalf of the student.
- Payments from 529 and College Savings Plans.
What are "qualified tuition and related expenses" and what are not?
Qualified expenses are amounts paid for tuition, fees and other related expense for an eligible student that are required for enrollment or attendance at an eligible educational institution.
Mandatory Semester Fees
- Library Fees
- Student Activity Fees
- Technology Fees
Student Health Fees
Late Fees/Replacement Fees
Parking Fees and Fines
What Does the 1098-T Look Like?
Which Boxes should be filled in, and what do they mean?
Box 1: Payments received from any source for qualified tuition and related expenses received during the year. Payments that apply to non-qualified charges are excluded.
Box 2: IRS no longer uses (Prior to 2018, RHSHS used to report by charges billed)
Box 3: IRS no longer uses
Box 4: Adjustments made to a prior year's billed qualified tuition and related expenses (if applicable)
Box 5: Scholarships or Grants posted to your student account during the calendar year.
Box 6: Adjustments made to a prior year's or grants or scholarships
Box 7: Box is checked if there are both charges and payments for a future term received in the tax year.
- For example, if you paid for Spring 2021 QTRE during November or December 2020, this box will be checked. Any payments posted for Spring 2021 after 12/31/2020 will be reported on the 2021 1098-T.
Box 8: Box is checked if you are enrolled half time or greater
Box 9 & 10: Not used by RHSHS
Does my 1098-T include charges for books?
No, RHSHS does not include amounts paid for books. You should consult with your tax advisor to determine is payments for books, equipment or fees should be considered eligible for education tax credits or deductions when preparing your income tax return.
Who can I contact if information is incorrect on my Form 1098-T?
The SSN and the address on your 1098-T are obtained from information provided by the student to RHSHS. The address on the form is irrelevant for IRS income tax filing purposes. If your address is incorrect, there's no need to request a corrected 1098-T. However, please notify RHSHS of your correct address promptly so your school record can be updated.
The single most important information is your SSN and it must be correct. If it is blank or incorrect, contact the Student Accounts Office immediately, so a corrected Form 1098-T can be issued and your school record can be updated.
Receiving a 1098-T form does not guarantee eligibility for educational tax credits or deductions. Students with questions should consult a tax advisor or the Internal Revenue Service at www.irs.gov or 1-800-829-1040, not the Student Accounts or Financial Aid Offices at RHSHS. RHSHS employees cannot provide legal or tax advice.
The following online resources may also be helpful: