What is Form 1098-T?
Form 1098-T is a tax document prepared by higher education institutions to report payments of qualified tuition and related expenses (QTRE), as well as scholarships and grants disbursed during the calendar year.
What are qualified tuition and related expenses?
Qualified tuition and related expenses (QTRE) include MIT’s tuition and student life fees.
Housing expenses, meals, books, supplies, health insurance fees, and other fees not related to course enrollment are not reported on Form 1098-T.
What does each box on Form 1098-T report?
- Box 1 reports amounts paid for MIT tuition and student life fees during the calendar year. Box 1 may include payments made in the current calendar year for courses to be held at MIT during the upcoming calendar year (e.g. tuition paid in December 2019 for spring semester 2020 will be reported in Box 1 of Form 1098-T issued for calendar year 2019).
- Box 4 is for adjustments made for a prior year such as QTRE payments and/or reductions in charges for QTRE that relate to amounts billed from a prior year.
- Note: Due to COVID-19 policy changes, MIT refunded a portion of the student life fee for the spring 2020 term. Since the fee was already reported as paid on your 2019 Form 1098-T, you will see the adjusted amount for 2019 in Box 4 of your form.
- Box 5 reports scholarships and grants disbursed during the calendar year. This amount includes all payments designated as scholarships and grants that are administered and processed by MIT Student Financial Services (SFS), as well as all payments by third parties (i.e. government, private, civic, religious, and/or nonprofit grants) to offset the cost of attendance.
- Box 6 is for adjustments to scholarships or grants from a prior year.
Box 1 of my Form 1098-T does not equal the amount I paid to MIT for tuition during the year. Is this a mistake?
No - Box 1 reports amounts paid for QTRE during the calendar year (January to December of the previous year), as opposed to the academic year (September of the prior year to May of the current year). The form does not take into account that tuition bills may be due in a different calendar year than the term dates. For example, tuition for the spring term is typically billed in December, so a student may have paid tuition for the spring term in December 2019, despite the fact that the classes did not commence until February 2020. The tuition paid for the spring term will be reported in Box 1 of the form issued for calendar year 2019.
|COVID-19 Update for 2020 and 2021 Tuition Payments|
Due to changes in the academic calendar and COVID-19 related policies, spring term 2021 tuition will be billed in January 2021, instead of December 2020. Therefore, tuition and fees paid for spring term 2021 will be posted in January and reported in Box 1 of your 2021 Form 1098-T. Spring 2021 term tuition and fees will not be reported on the Form 1098-T issued for calendar year 2020. Box 7 will not be checked for calendar year 2020.
Who will receive a Form 1098-T?
MIT issues Form 1098-T only to degree-seeking students whose scholarships and grants do not exceed qualified tuition and related expenses for the calendar year. Copies of Form 1098-T are also filed with the Internal Revenue Service (IRS).
Consistent with IRS regulations, MIT does not issue Form 1098-T to:
- students enrolled in courses that do not lead to a post-secondary degree (e.g. visiting students and exchange students)
- students whose QTRE is 100% covered by scholarships and grants
When will I receive Form 1098-T?
Form 1098-T is available electronically via MITPay by February 1.
How do I use Form 1098-T?
The amounts reported on Form 1098-T may assist students in completing IRS Form 8863, which is used to calculate certain education tax credits that students may qualify for when filing their federal income tax returns. Depending on a student’s income (or family’s income, if a dependent), enrollment status (full-time or part-time), and/or the amount of qualified educational expenses for the year, students may be eligible for a federal education tax credit.
It is the student’s responsibility to maintain records of any scholarships, grants and other funding received in excess of tuition and fees during the calendar year, and to report these amounts on his or her individual income tax return if used for non-qualified expenses such as room and board, travel, and non-essential equipment.
How can I access Form 1098-T from a prior year?
A Form 1098-T from a prior year can be accessed electronically via MITPay. If you no longer have access to MITPay, please contact Student Financial Services: email@example.com
There is an error on my Form 1098-T – how can I get a corrected copy?
Contact Student Financial Services: firstname.lastname@example.org
What resources are available regarding questions on Form 1098-T?
- Form 1098-T: https://www.irs.gov/forms-pubs/about-form-1098-t
- IRS Publication 970, Tax Benefits for Education: irs.gov/publications/p970/index.html
Note: MIT cannot provide personal tax advice. For specific individual income tax advice, please consult a tax preparer and refer to Tips for Choosing a Tax Preparer for assistance.