This information must not be construed as tax advice. Southwestern Illinois College cannot advise on questions pertaining to specific tax situations. Please contact your tax adviser or the Internal Revenue Service for information about your tax return.
A The Taxpayer Relief Act of 1997 allows a tax credit to be claimed for out-of-pocket payments made to Southwestern Illinois College (SWIC) during the Tax Filing Year (Jan. 1 – Dec. 31) for qualified tuition and related expenses. Your Form 1098-T, Tuition Statement, lists the payments received by SWIC for qualified tuition and related education expenses in the Tax Filing Year, which is reported to the IRS. The 1098-T Statement contains information the tax filer can use to complete the IRS Form 8863 – Education Credits, American Opportunity and Lifetime Learning Credits.
A SWIC now offers your 1098-T Statement online through your eSTORM account!
If you register to receive your forms electronically, access to your 1098-T Statement will be available mid-January before the traditionally mailed forms.
Other benefits of electronic 1098-T access:
1. You can access your 1098-T Statement online any time
2. You can print a copy of your 1098-T Statement when you need it
3. Online delivery eliminates the chance that the Statement 1098-T will get lost, misdirected or delayed during mail delivery, or misplaced once received
4. You can receive your 1098-T Statement even while traveling or on assignment away from your home address
5. You can change your mind and withdraw from online delivery at any time
The IRS has approved delivery of your 1098-T Statement electronically if you provide your consent electronically. For SWIC, this applies to tax years 2008 to current.
Steps to Grant Consent
1. Logon to your eSTORM account
2. Click on the Student Center
3. Scroll to the Finances section
4. Click the drop-down arrow next to Other Financial
5. Select View 1098-T and click the arrow
6. Select the Grant Consent button
7. Check Yes, I have read the agreement
8. Select Submit
Once you grant consent to receive your 1098-T Statement electronically, a 1098-T will NOT be mailed. Instead, an email notification will be sent to your student email account annually when the 1098-T Statement is available. You must return to eSTORM each year to view or print a copy of your 1098-T Statement. Your consent will apply to the current year and any subsequent years unless consent is withdrawn.
NOTE: If you do not wish to grant consent to receive your 1098-T Statement electronically, a paper copy will continue to be mailed to you at the address you provided to the Enrollment Services Office.
Software needed to view and print the 1098-T Statement
Adobe Acrobat Reader is required to view and print the IRS 1098-T Statement. By granting consent to electronic delivery of this form, you are confirming the ability to view the documents in this format. Adobe Acrobat Reader is available as a free download at http://www.Adobe.com
Withdrawing Consent to receive an electronic 1098-T
You may withdraw consent to electronically receive your 1098-T Statement at any time in writing by emailing BusinessOffice@swic.edu or by mail to:
Southwestern Illinois College
2500 Carlyle Avenue
Belleville, IL 62221
The Business Office will send a confirmation of your request to your SWIC student email account. The withdrawal of consent for electronic delivery does not apply to electronically furnished statements issued before the date the withdrawal takes effect.
Once consent is revoked, you will no longer have online access and will not be able to view or print your 1098-T Statement electronically.
Availability of Electronic 1098-T Statements
Electronic 1098-T Statements will be available for seven years after the tax year.
Notice of Termination of Electronic Access
Consent for electronic delivery of IRS Statement 1098-T will apply to statements issued each year until one of the following occurs:
1. Your student access to eSTORM expires, or
2. You make a written request to withdraw the electronic consent, or
3. The College ceases to provide the option for electronic delivery
Please direct other questions to BusinessOffice@swic.edu or call (618) 235-2700 ext. 5367
A These are federal income tax credits. For an overview of these tax credits and allowable tuition and fee tax deductions visit the IRS Web site at www.irs.gov
IRS Publication 17, Chapter 35, provides a clear explanation of the eligibility requirements, filing instructions and comparison of the credits.
Education credits may be claimed on IRS Form 8863. Instructions for Form 8863 provide a helpful chart to determine eligibility criteria and allowable charges.
Whether or not you may take advantage of these tax credits depends upon your individual circumstances.
A In late January of each year, SWIC mails an IRS Form 1098-T to all students who were enrolled in credit courses, provide a valid social security number, and had payment(s) related to qualified tuition and related educational expenses between Jan. 1 and Dec. 31 of the previous calendar year.
It serves to alert students that they may be eligible for federal income tax education credits. While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax credit.
Receipt of Form 1098-T does not indicate eligibility for the tax credit nor is there an IRS requirement that you must claim the credit. Claiming education tax benefits is a voluntary decision for those who may qualify.
To determine the amount of qualified tuition and fees paid, and the amount of scholarships and grants received, the taxpayers should use their own financial records.
NOTE: It is up to each taxpayer, after consideration of relevant IRS regulations, and, perhaps, the advice of a tax consultant, to determine eligibility for the credits and how to calculate them.
AThere are several possibilities why a 1098-T was not sent.
1. The IRS does not require the college to send you a 1098-T if your scholarship and grants (including formal billing arrangements with employers, government agencies, etc.) exceeded the payments received amount for qualified tuition and related payments.
2. You attended SWIC in the spring term of the Tax Filing Year but you had registered and made payments in the previous Tax Filing Year.
3. You are classified as a non-resident alien. (however you may request one)
4. Your payment related to only non-credit courses.
5. You were not enrolled in credit classes for the tax year.
A 1098-T form is not required to claim an education tax credit. If you did not receive a 1098-T and believe you might be entitled to the credit, you can print charge, payment, and financial aid information directly from your eSTORM account for your tax preparation use. Follow the steps in the document ‘View and Print Account Activity’ in the 1098-T folder of eSTORM help.
A Southwestern Illinois College mailed your 1098-T Statement to the address you provided to the Enrollment Services Office. You can verify the address recorded with SWIC by checking the Personal Information section of your eSTORM Student Center and use the address change request link to update your address.
Note: The IRS does not require an updated address so no new 1098-T will be produced.
A As an eligible institution, Southwestern Illinois College complies with the IRS requirements, reporting payments received for qualified tuition and related expenses less any reimbursements or refunds during the calendar year in Box 1 of the 1098-T.
Box 5 reports scholarships and grants received.
Adjustments are listed in boxes 4 and 6. If you claimed a Hope or Lifelong Learning credit in a previous tax year, and show an adjustment in either box, you might need to repay (recapture) an amount on your current return.
Box 4 contains required adjustments (reductions) made during the Tax Filing Year for amounts billed in a previous tax year.
Box 6 shows required adjustments (reductions) made during the Tax Filing Year for amounts received as scholarships or grants in a previous tax year.
A You may claim a tax credit only for qualified tuition and related expenses actually paid during the calendar year. To document these payments, you can use student billing statements, receipts or cancelled checks. Payment information that might be needed to complete your tax return is available in your in eSTORM account.
Under the Finances area, click “other financial” and select “Payments.” Enter the calendar year dates.
To print the page, click Hide Menu, then click the printer icon, select Print Preview, adjust the size to fit the screen and print.
A Please contact the Business Office at 618-235-2700, ext. 5491. This information includes name, Social Security number and amounts in Box 1, Box 4, Box 5, or Box 6.
A Please be advised the SWIC will not mail duplicate 1098-T Forms. You may access this information electronically, see How do I receive and print my 1098-T Statement electronically?
A As defined by the IRS for educational credits, “Qualified educational expenses are tuition and certain related expenses required for enrollment at an eligible educational institution. Student-activity fees are included in qualified education expenses only if the fees must be paid to the institution as a condition of enrollment or attendance.”
Expenses for books, supplies, and equipment needed for a course of study may be eligible under one or more credits.
Adjustments are reductions made in the Tax Filing Year for amounts billed in a prior year. Adjustments are reported in Box 4 and might reduce any allowable education credit you can claim for the prior year.
See IRS Form 8863 or Pub. 970 for more information.
A Qualified grants and scholarships are administered through the college and processed during the calendar year for payment of a student’s cost of attendance. The amount of scholarships and/or grants for the calendar year might reduce the amount of any allowable tuition and fees deduction or the education credit you can claim for the year.
On the 1098-T Statement, scholarship and grant payments made on your account from Jan. 1 to Dec. 31 of the Tax Filing Year are reported in Box 5.
Adjustments (reductions) occurring in the Tax Filing Year for scholarship and grant payments in a prior year are reported in Box 6.
This amount could affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. See IRS Form 8863 or Pub 970 for more information.
Instructions for Student: An eligible educational institution, such as a college or university in which you are enrolled, and an insurer who makes reimbursements or refunds of qualified tuition and related expenses to you must furnish this statement to you. You, or the person who can claim you as a dependent, may be able to claim an education credit on Form 1040 or 1040A for the qualified tuition and related expenses that were actually paid in current tax year. Institutions report payments received in the current tax year in box 1. Your institution must include its name, address and information contact telephone number on this statement. It may also include contact information for a service provider. Although the service provider may be able to answer certain questions about the statement, do not contact them or the filer for explanations of the requirements for (and how to figure) any education credit that you may claim. For more information about the credit, see Pub 970, Tax Benefits for Education, Form 8863, Education Credits, and the Form 1040 or 1040A instructions.
Student’s identification number. For your protection, this form may show only the last four digits of your SSN, ITIN, or ATIN. However, the issuer has reported your complete identification number to the IRS and, where applicable, to state and/or local governments. Account number. may show an account or other unique number the filer assigned to distinguish your account.
Box 1. Shows the total payments received from any source for qualified tuition and related expenses less any related reimbursements or refunds.
Box 2. Reserved for future use.
Box 3. Reserved for future use.
Box 4. Shows any adjustment made for a prior year for qualified tuition and related expenses that were reported on a prior year Form 1098-T. This amount may reduce any allowable education credit that you claimed for the prior year. See “recapture” in the index to Pub 970 to report a reduction in your credit or deduction.
Box 5. Shows the total of all scholarships or grants administered and processed by the eligible educational institution. The amount of scholarships or grants for the calendar year (including those not reported by the institution) may reduce the amount of the education you claim for the year.
Box 6. Shows adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. Your may have to file an amended income tax return (Form 1040x) for the prior year.
Box 7. Shows whether the amount in box 1 includes amount for an academic period beginning January – March of current calendar year. See Pub. 970 for how to report these amounts.
Box 8. Shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at the reporting institution. If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the American opportunity credit. You do not have to meet the workload requirement to qualify for the lifetime learning credit.
Box 9. Shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential. If you are enrolled in a graduate program, you are not eligible for the American opportunity credit, but you may qualify for the lifetime learning credit.
Box 10. Shows the total amount of reimbursements or refunds of qualified tuition and related expenses made by an insurer. The amount of reimbursements or refunds for the calendar year may reduce the amount of any education credit you can claim for the year.
For questions relating specifically to information provided by SWIC on your 1098-T Form, contact the SWIC Business Office.
For additional information regarding these tax credits, visit the IRS Web site at www.irs.gov
*Please note that SWIC cannot provide tax advice.
Internal Revenue Service (IRS) Resources: Web site: http://www.irs.gov This Web site is a source of information for frequently asked questions, complete tax forms, publications and online help.
Publication 17, Your Federal Income Tax, Chapter 35
Publication 970, Tax Benefits for Higher Education
Form 8863, Education Credits (American Opportunity and Lifetime Learning Credits)
Instructions for Form 8863, Education Credits
TeleTax Topics: Listen to pre-recorded messages on tax information by calling 800-829-4477.
Tax Topic 457 – Tuition and Fees Deduction
Internal Revenue Service: 800-829-1040. To obtain tax forms: 800-829-3676.