November 20, 2018
Form 1098-T Changes for 2018 Tax Year
When you receive your form 1098-T in 2019 for tax year 2018, it will look slightly different than it has in prior years. The option for colleges and universities to report the “amounts billed” on form 1098-T was eliminated by Congress and the IRS. We must now report the “amounts paid” for qualified tuition and expenses. This change goes into effect for the 2018 tax year.
What CMU Students Can Expect
Students receiving a 1098-T form for tax year 2018 will no longer see an amount in Box 2 (Amounts billed for qualified tuition and related expenses). Instead, they will see an amount in Box 1 (Payments received for qualified tuition and related expenses). Additionally, Box 3 will be checked only on 2018 forms to indicate the reporting change.
Reason for the Change
A federal government report determined that there were a large number of errors relating to educational tax credits, and the majority of these errors were caused by confusion regarding Box 2 (amounts billed) reporting. This change eliminates this confusion and the potential for inaccuracies on 1098-T forms moving forward.
Questions about this change should be directed to your tax professional. More details about the 1098-T form and higher education tax credits may be found at www.cmu.edu/sfs/taxes.