Tax Information

What is a 1098-T form? (www.irs.gov)

The 1098-T Form reports information on what you paid for Qualified Tuition and Related Expenses (QTRE) at a college or university. All colleges and universities are required by the Internal Revenue Service to provide you with this information. It serves to alert students that they may be eligible for federal income tax education credits such as the Lifetime Learning Credit and the American Opportunity Credit (previously the Hope Scholarship Credit) as part of their federal income tax return. IRS Publication 970, "Tax Benefits for Higher Education," as well as Chapter 35 of IRS Publication 17 (Your Federal Income Tax Guide for Individuals), provide additional information on these credits. There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.

The 1098-T contains a combination of student personal data, such as name, address, Social Security Number (SSN), and institutionally provided enrollment data, such as status as a graduate or undergraduate student, along with whether the student was enrolled at least half-time during the calendar year. The IRS will use this data to help determine who is eligible for the education tax credits.

1098-Ts will be issued for students meeting the IRS reporting criteria. Click here to see criteria.

---

Which boxes should be filled in and what do they mean?

• Box 1: Reflects payments received during the calendar year not to exceed the total of (Qualified Tuition and Related Expenses (QTRE) charged
• Box 2: IRS no longer uses
• Box 3: Reserved by IRS for future use
• Box 4: Adjustments made to a prior year's billed qualified tuition and related expenses (if applicable)
• Box 5: Scholarships, Grants, or most Third Party payments (excluding payments from 529 plans)
• Box 6: Adjustments made to a prior year's scholarships or grants (if applicable)
• Box 7: Box is checked if the amount in Box 1 includes payments for an academic period beginning January - March of the following tax year.
• Box 8: Box is checked if you are enrolled half time or greater
• Box 9: Box is checked if you were enrolled as a graduate student

---

What payments are included in Box 1? What is QTRE “qualified tuition and related expenses?

Qualified tuition and related expenses (QTRE) are those that a student must pay that are within the IRS guidelines. This is a chart of Qualified Expenses vs. Not-Qualified Expenses for your reference. Only payments that pay QTRE will show in Box 1.

Qualified Expenses Tuition Mandatory Fees Lab Fees Online Fees

Non-Qualified Expenses Housing Meals

---

I only have amounts in Box 4 adjustments and/or Box 6 adjustments, what does this mean?

Adjustment amounts reported in Box 4 and Box 6 may change any allowable education credit you may have claimed for a prior year. We encourage you to seek the advice of a tax advisor for specific information concerning the handling of prior-year adjustments.

What are the criteria set by the Internal Revenue Service for receiving a 1098-T form?

The IRS allows various exclusions from issuing a 1098-T, such as:

• Student's scholarship or grants amount (Box 5) is greater than their payments for QTRE (Box 1)
• Student's qualified tuition and related expenses are covered by a formal billing arrangement directly between DSC and the student's employer or government entity
• A student took courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program
• The student is not a resident of the United States and Forms can be provided upon request

---

Why aren't my payments for Spring 2025 included in Box 1?

Payments made for Spring 2025 charges prior to January 1, 2025, will not be included in the 2025 1098-T form.

---

When will I receive my 1098-T form?

Federal regulations mandate these items to be postmarked no later than January 31st to all eligible students with a valid Social Security Number on file and an address in the United States. Online access to this document may be available before that via www.tsc1098t.com

---

 

Am I eligible for a tax credit?

Employees of Daytona State College cannot offer assistance with tax form preparation, nor supply advice on what can or cannot be claimed.

The responsibility for your individual tax circumstances rests with the taxpayer alone, and Daytona State College is not responsible for your interpretation of this information. You are encouraged to refer to federal Publication 970 from the IRS.

In compliance with IRS regulations, amounts paid to non-U.S. citizen students as scholarships or grants and compensation for personal services may be subject to income tax withholding. Amounts paid for personal services must be reported via a W-2 form. Amounts paid as scholarships that are subject to withholding are reported via a 1042-S form. 1042-S forms will be mailed by March 15th and W-2 forms will be mailed by January 31st of each year.

Whether a scholarship or grant from U.S. sources is subject to withholding depends on the nature of the payments and whether the recipient is a candidate for a degree. A qualified scholarship is NOT subject to tax. A qualified scholarship is a scholarship that is used for:

1. Tuition and fees required for enrollment or attendance at an educational institution and
2. Fees, books, supplies, and equipment required for courses of instruction at the educational institution

The payment of a qualified scholarship to a nonresident alien is not reportable and is not subject to withholding.

The portion of a scholarship paid to a nonresident alien which does not constitute a qualified scholarship is reportable on Form 1042-S and is subject to withholding. The withholding rate is 14% for nonresident aliens temporarily present in the United States in “F”, “J”, “M”, or “Q” nonimmigrant status. The withholding rate for nonresident alien individuals in any other immigration status is 30%.

All non-US citizens must complete an IRS Withholding Certification of Foreign Status form. This form will assist us in determining if an individual will be treated as a resident alien or nonresident alien for tax purposes. Students who satisfy the IRS Physical Presence Test will not be subject to withholding. Click here to print the IRS Withholding Certification of Foreign Status form.

For more information, please see IRS Publication 515 and IRS Publication 519.