Student Financial Services

Tax Information

Many tax benefits exist for students attending a higher education institution. Student Financial Services recommends that students/parents consult with a tax professional or visit one of the following websites for information on these benefits:

• American Opportunity & Hope and Lifetime Learning Education Credits
• IRS Tax Information for Students
• Tax Benefits for Education

Frequently Asked Questions About the 1098-T

Why did I receive a 1098-T and what am I supposed to do with it?

Each year by January 31, Wake Forest University mails an IRS Form 1098-T to all students who had qualified tuition and other related educational expenses billed to them during the previous calendar year.

The 1098-T reports amounts billed for qualified educational expenses for the tax year (Box 2). An important reminder is that spring tuition and fees are billed in December. For example, the 2011 1098-T Form would list fall 2011 (billed 7/1/11) and spring 2012 (billed 11/1/11) tuition and fees. Spring 2011 tuition and fees would be listed on the 2010 1098-T form since it was billed 11/1/10.

The Scholarships and Grants (Box 5) are reported in the tax year that they were disbursed to the student's account. For example, the 2011 1098-T Form would list spring 2011 financial aid (disbursed by the Office of Financial Aid the first day of classes-January 2011) and fall 2011 financial aid (disbursed by the Office of Financial Aid the first day of classes-August 2011).

Students and authorized payers can view their student account history by visting DEAC which can assist them in determining amounts paid in a tax year.

Please refer to IRS Publication 970, Tax Benefits for Education for additional resources. The Tax Treatment of Scholarship and Fellowship Payments table is located within that publication.

This form is informational only and should not be considered as tax opinion or advice. It serves to alert students that they may be eligible for federal income tax education credits.

Receipt of Form 1098-T does not indicate eligibility for the tax credit. IMPORTANT: It is the responsibility of each taxpayer to determine eligibility for the credits and how to calculate them.

How can I get another copy of the 1098-T?

Due to the Family Educational Right of Privacy Act (FERPA), only students may request 1098-T form reprints by contacting Student Financial Services at (336) 758-5234 or sfs@wfu.edu.

The University's policy is to mail via the US Postal Service all reprint requests to the student's permanent address on file.

Did Wake Forest send a copy of this form to the IRS?

Yes. Section 6050-S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires institutions to file information returns to assist taxpayers and the Internal Revenue Service in determining eligibility for the American Opportunity and Hope and Lifetime Learning education tax credits. Forms are mailed at the end of January of each year for the previous tax year, which runs from January 1 to December 31.

What educational expenses are considered as qualified tuition and related expenses?

For information about qualified educational expenses, click here.

Why isn't there an amount in Box 1 on the 1098-T?

The IRS instructs institutions to report either payments received (Box 1) or amounts billed for qualified tuition and related expenses (Box 2) on the 1098-T. Wake Forest reports qualified tuition and related expenses that were billed during the tax year (Box 2) and scholarships and grants (Box 5). Therefore, Box 1 will be blank.

What is the American Opportunity and Hope and Lifetime Learning Education Credits and what are allowable tuition and fee tax deductions for each?

Click here for an overview of the American Opportunity and Hope and Lifetime Learning Education Credits and allowable tuition and fee tax deductions.Publication 970 explains tax benefits for education.

What if I still have questions?

Contact Student Financial Services at (336) 758-5234 or the IRS Tax Information Line at (800) 829-1040.

Wake Forest does not provide legal, tax or accounting advice to students, parents or authorized payers.