All scholarships, fellowships or grants will continue to be reported in Box 5. The 1098-T form is provided to help students and parents determine eligibility for an American Opportunity Tax Credit or a Lifetime Learning Credit, and it should not be used to calculate taxable income. may claim as part of your tax return.

What is included on a 1098-T?

A form 1098-T, Tuition Statement, is used to help figure education credits (and potentially, the tuition and fees deduction) for qualified tuition and related expenses paid during the tax year. You can claim the $2,500 American Opportunity Credit for each qualifying student on your federal income tax return.

Are Pell Grants included on 1098-T?

Pell grants are not taxable if used for qualified education expenses. It’s listed in Box 5 of your 1098-T as an offset to your Box 1 or 2 figures, which are the amount of tuition & fees received/billed by your school.

What is box 5 of IRS Form 1098-T?

Scholarships and/or Grants BOX 5 of IRS Form 1098-T reports the total of scholarships or grants administered or processed by the Office of Student Accounts and/or the Office of Student Financial Aid during the calendar year. Please note that the timing of each charge and scholarship are important regarding which year they are reported in.

What is in box 5 of Tuition Statement?

Box 5 shows the amount of scholarships and grants that were paid directly to the school for the student’s expenses. Scholarships and grants may reduce the amount of qualified expenses the student can use when calculating a deduction or credit.

What do schools need to know on Form 1098-T?

Other information: Schools must check Box 7 if the amount in Box 1 or 2 includes expenses for an academic term that begins in the first three months of the year following the year covered by the 1098-T. A check mark in Box 8 indicates that the student is enrolled at least half-time.

What should not be included in box 5?

The amount reported in BOX 5 does not include: Tuition waivers provided during the calendar year. Scholarships, grants, reimbursements or other types of sponsorships not administered by the Office of Student Accounts and/or the Office of Student Financial Aid.