Education Tax Credits
A full explanation of education tax benefits 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 provides an IRS Form 1098-T by January 31 for the previous calendar year to enrolled students, reflecting the following information:
- 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. In Bowdoin's case, tuition is the only fee that qualifies. 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. 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 families’ 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 - The box is checked if the amount in Box 2 includes amounts for an academic period that starts January-March of the next tax year. If a student attends Bowdoin in the fall semester, but in the spring semester studies away or is otherwise not enrolled, this box will not be checked.
- Box 8 - The box is checked if the student attended Bowdoin College at least half-time during the year.
Graduating Seniors: The 1098-T issued in January of the senior year is the final one seniors receive. It reports the fees for the spring semester of that year in Box 2 if Box 7 is checked. After this, a 1098-T will be generated only if adjustments are made to tuition and grants in a later tax year. Therefore, students graduating in May 2014 will need to refer to the 2013 1098-T for the 2014 tax filing.