IRS Form 1098-T & Education Tax Credits
A full explanation of education tax credits can be found in the IRS Publication 970, Tax Benefits for Education, which is available on the IRS web site or by calling 1-800-829-3676 (1-800-TAX-FORM). Whether a taxpayer may take advantage of these benefits depends on a taxpayer's individual facts and circumstances. Bowdoin College cannot provide legal or tax advice.
As a post-secondary educational institution that receives qualified tuition and related expense payments, Bowdoin is required to provide an IRS Form 1098-T by January 31 for the previous calendar year to enrolled students, reflecting the following data:
- Student's name, permanent home address, and Social Security Number as recorded in the Registrar’s Office as of December 31 of the relative tax year.
- Name, address, contact telephone number, and federal tax ID of the College.
- Box 2 - Amount of qualified tuition and related expenses billed by the College during the tax year. Box 2 contains the qualified billed fees for the fall semester of the tax year and the spring semester that begins in January of the next tax year. In Bowdoin's case, tuition and the activity fee are the only fees that reported in 2014. Room and board are not defined as qualified educational expenses (see IRS Publication 970) and so are not reportable on the 1098-T.
- Box 4 - Adjustments (reductions) to an amount reported in Box 2 in any previous year.
- Box 5 - Amount of scholarships and grants administered and processed by the College during the tax year. Generally, they are for the fall semester of the relevant tax year and the spring semester beginning in January of the next tax year. Grants reported in Box 5 are Bowdoin College grants, Pell, SEOG, veterans benefit payments received by the College, and state grants. There may be other organizations that provided scholarships or grants to the student which the College may receive as payments, but they are not reported on the 1098-T because they do not meet the condition of being administered and processed by the College. While an individual or family’s tax liability depends on facts and circumstances, you should be aware that the IRS considers grant awards in excess of the amount reported in Box 2 (qualified educational expenses) to be taxable income.
- Box 6 - Adjustments (reductions) to an amount reported in Box 5 in any previous year.
- Box 7 - This box is checked if the amount in Box 2 includes amounts for an academic period that starts January-March of 2015. If a student studies away or is otherwise not enrolled for spring semester 2015, this box will not be checked.
- Box 8 - This box is checked if the student attended Bowdoin College at least half-time during the year.
Special Note to May 2015 Graduates: The 2014 1098-T is the final one most seniors will receive. It reports the fees for the spring semester of 2015 in Box 2, if Box 7 is checked. After this, a 1098-T will be generated only if adjustments are made in a later tax year to tuition and grants that were reported for 2014. Therefore, students graduating in May 2015 may need to refer back to the 2014 1098-T for the 2015 tax filing regarding payments made in 2015 for fees reported on the 2014 1098-T.