Dear Student:
In accordance with IRS guidelines, Middlebury College is providing the form 1098-T to you and to the Internal Revenue Service. This form is provided to you to alert you to the possibility that you or your parent/guardian may be eligible for federal income tax credits that could reduce your 2008 federal income tax liability.
Here are some frequently asked questions with answers to help you understand this form:
Why is there not an amount in Box 1?
The IRS gives the option of either reporting amounts billed or total payments received. Middlebury College has elected to comply with the option of reporting total amounts billed by the college for qualified tuition and related expenses during the calendar year. This amount is reported in Box 2.
What is included in the amount in Box 2?
Since Middlebury College has a comprehensive fee for Undergraduate Studies, the internal determination of tuition plus student activity fee was for each of the semesters billed in calendar year 2008 (fall of 2008 and spring of 2009) $21,355.36. If applicable, the physical education fee for Fall of 2008 and Spring of 2009 is added to those amounts. For the Language Schools and the Breadloaf Schools of English, the amount represents what was billed for tuition. Note: Do not submit Form 1098T with your tax return it is an information return only. It shows amounts BILLED, which may not equal the amount you PAID this tax year. Only report the amounts actually PAID and RECEIVED on your tax return. Keep a copy of your bank statement / Pay stubs etc. as proof of payment in case of an IRS audit.
What is included in Box 5?
All financial aid administered by Student Financial Services, aid received from outside sources such as employer tuition benefits and state grants, and other monies received from the College such as summer internship funding, summer travel and Dean’s Grants (check here for more description of student payments). Prizes are reported on a separate form called 1099MISC. Financial Aid is reported by the date it was POSTED to the account, so if your aid for the Spring 2009 was posted in January 2009 instead of Fall 2008 like most aid decisions, it will not show up on the 2008 1098-T.
What expenses are eligible for those federal income tax credits (the Hope or Lifetime Learning Credit)?
Under Section 25A of the Internal Revenue Code and the regulations there under, the taxpayer may claim an education tax credit only with respect to qualified tuition and expenses actually paid during the calendar year. Therefore you may not be able to claim an education tax credit with respect to the entire amount of amounts billed, if you did not pay the entire amount that calendar year. In addition, aid reported in Box 5 and other similar amounts that were not administered and processed by the College may reduce the amount of any allowable education tax credit for the calendar year.
The amount of any reimbursements or refunds of qualified tuition and related expenses reported by an insurer may reduce the amount of an allowable education tax credit for a taxable year (and may result in an increase in tax liability for the year of the refund).
Why is there no financial information on the form?
If the student graduated in the spring of 2008, the financial data such as qualified tuition charged and scholarships were posted to the student’s account in the fall of 2007. These amounts would therefore have been reported on the 1098-T issued to you in 2007.
Where can I get more information?
Middlebury College can only answer questions related to how the Form 1098-T was prepared. Please refer to the IRS Forms and Publications noted below, for explanations relating to the eligibility requirements for, and calculation of any allowable education tax credit. You may also want to consult with your individual tax preparer.
See IRS Publication 970, this IRS Bulletin 2006-36 page 363ff. and IRS Form 8863 for more information. You may also call the IRS at 800-TAX FORM.
Is the Form 1098T information available online?
Yes, log into Banner Web services, go to the Student Accounts and Financial Aid tab and then to the Accounts Receivable Menu.
Last Updated: April 27, 2009