The Form 1098-T is a statement that colleges and universities are required to issue to certain students. It provides the total dollar amount paid by the student for what is referred to as Qualified Tuition and Related Expenses (or “QTRE”) in a single tax year. Its main purpose is to be used to figure out if you qualify for educational tax credits or deductions.

For guidance, please consider:
Publication 970: www.irs.gov/forms-pubs/about-publication-970
Form 8863: www.irs.gov/forms-pubs/about-form-8863
Instructions for Form 1040: www.irs.gov/forms-pubs/about-form-1040

Additional information is available here:
www.irs.gov/Credits-Deductions/Individuals/Qualified-Ed-Expenses
www.irs.gov/Education

You can also consult a qualified tax advisor.

No, the College does not include amounts paid for books in Box 1 of Form 1098-T. You should consult with your tax advisor to determine if payments for books, equipment or fees should be considered when preparing your income tax returns and determining eligibility for education tax credits or deductions.

A: The IRS provides the following instructions for what is to be included in Box 1: Enter the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year. The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year that relate to the payments received for qualified tuition and related expenses during the same calendar year. The amount reported is not reduced by scholarships and grants reported in box 5. Include in this box the receipt of a payment of past-due qualified tuition or related expenses from a previous calendar year, but only if the educational institution previously billed the student for such amount(s).

Example 1:
Student paid $2,000 towards qualified tuition/fees and generated charges of $1,500 in qualified tuition/fees during the calendar year. We can only report $1,500 in Box 1. We cannot exceed the amount of the charges generated even if payment received was more.

Example 2:
Student paid $1,035 towards qualified tuition/fees and generated charges of $1,035 in qualified tuition/fees during the calendar year. We can report the full $1,035 in Box 1. Charges generated and paid match within the same calendar year.

Example 3:
Student paid $1,000 towards qualified tuition/fees and generated charges of $1,500 in qualified tuition/fees during the calendar year. We can only report $1,000 in Box 1, which is the amount paid. The remaining $500 of charges still owed—when paid in the subsequent year—will be reported in Box 1 of that subsequent year.

All scholarships and grants provided to you in a given calendar year.