1098T Frequently Asked Questions
What is the 1098T Form?
The 1098T form is used by eligible educational institutions to report information about their students to the IRS. A 1098T form is considered for informational purposes only and must be provided to each student that qualifies. The 1098T form serves to alert students that they may be eligible for either the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC). Eligible educational institutions are required to submit the student's name, address, taxpayer’s identification number, enrollment status, academic status, payments (up to the amount of QTRE (qualified tuition and related expenses) billed), and scholarships & grants.
Please Note: It is the taxpayer’s responsibility to determine their eligibility for the educational credits and how to calculate them.
**We CANNOT give any tax advice, instruction, or suggestions of any kind.**
Please refer inquiries to your financial advisor or to the IRS website for further clarification.
New: Change to IRS Reporting Requirements
Beginning in tax year 2018, all eligible educational institutions are required by the IRS to report Payments Received for Qualified Tuition and Related Expenses (Box 1) up to the cost of QTRE. Amounts Billed (Box 2, which will now be blank on the 1098T form). Scholarships & Grants will continue to be reported in Box 5.
What are QTRE (Qualified Tuition & Related Expenses)?
The following are examples of qualified tuition and related expenses:
- Tuition costs
- Mandatory course, exam, & program fees
- Lab, general and student activity fees
The following are examples of unqualified tuition and related expenses:
- Room, board and health insurance charges
- Application, transcript, graduation, diploma and loan processing fees
What payments will be reported in Box 1?
- Cash, check, & credit card payments
- Loans (direct subsidized & unsubsidized, private, & Parent PLUS)
- Wire & third-party payments
- Scholarships & Grants
A more in-depth guide to Box 1 of the 1098T can be found here.
What will be reported in Box 5?
- Institutional Scholarships & Grants
- Outside Scholarships & Grants
- Third-party payments (which can include VA benefits, Government Agency payments and payments from employers)
What other information do I need to claim the tax credits?
The 1098T form serves to alert students that they may be eligible for federal income tax education credits. Receipt of a 1098T form does not in any way indicate a student’s eligibility for a tax credit. To determine the amount of qualified tuition and related expenses paid, and the amount of scholarships and grants received, a taxpayer should use their own financial records and if necessary, seek the expertise of a professional tax preparer.
For more information on both AOTC and LLC regarding eligibility, qualifying expenses, how to figure, claim credit, etc. please review IRS Publication 970.
Why is Box 1 blank on my 1098T Form?
If you graduated or left the College in the Spring semester, Box 1 could be blank because we bill the Spring semester at the end of the prior calendar year. Those fees would have been used in the calculation of QTRE in the prior year. Therefore, there would not be any QTRE in the current year to apply to any payments in the current year and we would not have any amount to report in Box 1.
Why didn't I get a 1098T Form?
The IRS does not require the generation of a 1098T form for:
- Students who are enrolled in non-degree/non-credit programs: 100% Audit
- Students who do not have any charges for Qualified Tuition and Related Expenses (QTRE)
- Students whose boxes contain all zeroes
- If grants/scholarship/3rd party payments covers QTRE at 100%
How can I get a copy of my 1098T?
North Central College posts 1098Ts online though Merlin:
- Go to merlin.noctrl.edu and log in using your North Central College Username and Password
- Click the student menu
- Below Financial Information on the left hand side of the page, click Student Tax Information
- Select “1098 Information.” You will see information on consenting to receive the form electronically. You do not need to complete this step as you have previously consented when you signed the Student Financial Responsibility agreement. You may bypass the consent boxes and view your 1098 statements below “1098” statements.
Please note that you can go to the website as often as needed to retrieve a copy.
Did NCC send a copy of the 1098T Form to the IRS?
Yes. North Central College is an eligible educational institution and is required by law to file 1098T forms to assist taxpayers and the IRS in determining eligibility for the AOTC and LLC education tax credits. 1098T forms are filed with the IRS no later than March 31st of each tax year.
What is the activity timeframe for the 1098T Form?
North Central College will report all payments made and scholarships/grants awarded, limited to QTRE, for a given calendar year (January 1 - December 31). This is based on the date the activity was applied to the account.
When will the 1098T Form be available?
North Central College will have the 1098T forms available through Merlin no later than January 31 of each year, as required by law. You will be notified by email when the forms are available online. If you have recently graduated from North Central College your form will be mailed. Please note that all forms are sent to your home address listed on your student account.
How can I get an itemized listing of the financial activity that is on my 1098T Form?
Account statements are available online by logging into Merlin and clicking on Account Summary/Online Statement under “Financial Information.”
My address listed on the 1098T Form has changed. Will this affect me?
No. The address shown on Form 1098T form is irrelevant for IRS income tax filing purposes. The single most important information on the form is your social security number. If your SSN or ITIN is incorrect on your 1098T form, please complete a W-9S form and send it to studentaccounts@noctrl.edu.
What if my SSN/ITIN is incorrect or missing on my 1098T Form?
If the 1098T form does not include the correct social security number (SSN/ITIN) or it is missing, please complete a W9-S form and send it to studentaccounts@noctrl.edu. We will update your form and a corrected one will be mailed to you.
Why does North Central College need my Social Security Number?
As it pertains to the 1098T form, North Central College needs to have the correct social security number for all students that attend the College to comply with the IRS requirements. Every year, as an eligible educational institution, North Central College must report enrollment information for all eligible students in connection with the AOTC and the LLC.
How does a student obtain a corrected 1098T Form?
If you have discovered a discrepancy on your 1098T form, please contact the Office of Student Accounts at 630-637-5689 or email studentaccounts@noctrl.edu.