Education Tax Credits

Students or parents may be eligible for tax credits based on eligible tuition payments made in the calendar year. For eligible students, Wesleyan issues an annual statement, form 1098T, which details all payments made during the calendar year. Paper copies of the form are mailed to the students' home addresses at the end of January and on-line copies are available in WesPortal.

1098T FAQ

What is Form 1098T?

Colleges and universities are required by U.S. law each year to provide U.S. persons Form 1098T.  This informational form assists families in calculating any education tax credit or deduction for which they may be eligible to claim based on amounts spent for education in a given calendar year.  To learn more about education credits see IRS Publication 970, Tax Benefits for Education.

You are considered a U.S. person if you are:

• A U.S. citizen, or
• A lawful U.S. permanent resident, or
• A resident alien for tax purposes

Who receives Form 1098T?

Every enrolled Wesleyan student whose student account had financial transactions posted during the calendar year will be issued a paper form in late January.  Non-enrolled students during the calendar year will not be issued a form. With the exception of Graduate students, the paper copy is mailed to the student at his/her permanent address on file in WesPortal (this address is maintained by the student).  An electronic copy is also available in WesPortal.

Do I need to provide Wesleyan with my Social Security Number (SSN)?

Yes.  The Registrar's Office maintains your official University record.  If you did not initially supply your SSN on your admission application you should update your University record.  You will be sent a reminder in the fall if your SSN is blank.  Bring a completed substitute IRS form W-9 to the Registrar's Office.  You will note on this form that the IRS may levy a $50 penalty if the SSN was requested, but is not provided.

What is included in Box 1?

The IRS requires that Wesleyan complete Box 1. Box 2 is intentionally left blank. Box 1 contains payments, scholarships and grants posted in the calendar year up to total qualified tuition and related expenses for the calendar year. Aid restricted to non-qualified tuition related expenses is reported only in Box 5.

Per the IRS, qualified tuition and related expenses does not include the Residential Comprehensive Fee (i.e. room and board).  Related expenses (i.e. required fees) at Wesleyan are mainly: Student Activity Fee, Graduate Activity Fee and Matriculation Fee.

Why is there not an amount in Box 2?

The IRS requires that Wesleyan complete Box 1. Box 2 is intentionally left blank. The IRS no longer gives the option of reporting amounts billed. 

As a courtesy, Wesleyan supplies total qualified tuition and related expenses and payment information at the bottom half of Form 1098T.  This information is not reported to the IRS. 

What is the timeframe for items listed in Box 5?

Items in Box 5 reflect scholarships/grants posted in the calendar year. 

Why isn't the Residential Comprehensive Fee reported on the 1098T?

The IRS specifically excludes "room and board" from the 1098T. 
If you need supporting documentation of these charges for college savings plan reporting, refer to Student Account Center.  This information can be found on the Activity Tab or by printing out the individual statements on the Statements Tab. 

Are Parent PLUS loans reported on my Form 1098T?

All loan proceeds, including PLUS loans, are included in Box 1, up to total qualified tuition and related expenses for the calendar year. Loan proceeds are also listed on the bottom half of the form.

Do I need to report my scholarships as taxable income?

Scholarships that pay for qualified tuition and related expenses are not taxable to the student.  However, if any portion of your scholarships paid for non-qualified expenses (i.e. Residential Comprehensive Fee), then you may be responsible for reporting that portion as taxable income on your tax return.  For further guidance, please see IRS Publication 970, Tax Benefits for Education.

Will I receive other tax forms from Wesleyan?

If you received a paycheck from Wesleyan during the calendar year you will receive Form W2, Wage and Tax Statement.  Questions pertaining to a W2 form should be directed to the Payroll Office at (860) 685-2670 or payroll@wesleyan.edu.

If you received a non-financial aid related prize from Wesleyan during the calendar year you will receive Form 1099 MISC.  Questions pertaining to a 1099 should be directed to the Accounts Payable Office at (860) 685-2843 or ap@wesleyan.edu.

1042-S Form that reports scholarship, fellowship, stipend, prize/award, reimbursement, or miscellaneous income, and/or any amounts excludable from taxation due to a tax treaty between your country of residence and the US. NOTE: If you received a Wesleyan scholarship that exceeded the amount charged for tuition, required fees, books and supplies or income that was exempt from taxation due to a tax treaty, you should receive a 1042-S from Wesleyan by the end of February each year.

https://www.wesleyan.edu/finance/foreignpayments/Stud_Taxes_Annual%20Requirements.html

Where can I get more information?

Wesleyan University can only answer questions related to how Form 1098T was prepared.  Members of Student Accounts and Financial Aid are available by phone at (860) 685-3080 or by email at TaxForm1098T@wesleyan.edu.

For more detailed information please visit the IRS website at www.irs.gov to obtain Publication 970 (Tax Benefits for Education)/Form 8863 (Education Credits) or consult with a professional tax practitioner.