Beginning with the 2018 tax year, the IRS is now requiring schools to report the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year in Box 1. Because of this change, the University of South Carolina will report payments received for qualified tuition and related expenses in Box 1 of the form, whereas in previous years, we reported amounts billed for qualified tuition and related expenses in Box 2. Box 2 is no longer an option. IRS guidelines require that student transactions must be reported in the calendar year in which they occur. The calendar year begins January 1st and ends December 31st. If you were a student between January 1 and December 31 of 2023 and the university received payments for qualified tuition and related expenses, you are eligible for a Form 1098-T Tuition Statement.
Please Note: The Tax Reform Act of 1997 provided taxpayers/students with Hope Scholarship and Lifetime Learning tax credit opportunities. As part of that act, the Form 1098-T Tuition Statement is available to students by January 31 and to the IRS at the end of March every year.
Form 1098-T will contain the following information if applicable:
Box 1 – The total payments received for qualified tuition and related expenses from all sources during the calendar year. This total is minus any reimbursements or refunds made during the calendar year that relate to those payments received during the same calendar year.
Box 4 – Adjustments made for a Prior Year. Reimbursements or Refunds of qualified tuition and related expenses made during the calendar year that relate to payments received for qualified tuition and related expenses reported on a 1098-T for a prior tax year.
Box 5 –Scholarships and grants administered and processed during the calendar year; there may be exceptions.
Box 6 –Adjustments to Scholarships or Grants for a Prior Year. Reductions in scholarships and grants made during the calendar year that were reported on a 1098-T for a prior tax year.
Box 7– This box is checked if payments received for qualified tuition and related expenses reported for 2023 relate to an academic period that begins in January through March of 2024.
Box 8–This box is checked if the student was at least a half-time student during any academic period that begin in 2023. A half-time student is a student enrolled for at least half the full-time academic workload for the course of study the student is pursing.
Box 9–This box is checked if the student was a graduate student enrolled in a program or programs leading to a graduate-level degree, graduate-level certificate, or other recognized graduate-level educational credential.
Box 10–For insurers that issued Insurance Contract Reimbursements or Refunds of qualified tuition and related expenses that were made to the student.
When to Consult a Tax Professional
If you have questions about whether you qualify for tax relief opportunities, please consult a tax professional. The university is prohibited from offering any tax advice and will not offer any explanations related to eligibility requirements and/or calculations for allowable education tax credit or tuition and fees deduction.
IRS Online Resources
There are many sources of related information available through the IRS that students may find helpful in determining eligibility and preparing your tax return including:
If you have questions regarding the amounts in the boxes on the 1098-T or require copies of billing statements or receipts, please contact us:
E-mail: firstname.lastname@example.org (send from your USC-assigned e-mail address)
The IRS FAQs regarding the CARES refunds provides guidance regarding the American Opportunity Credit and Lifetime Learning Credit.