How to Use Form 1098T When Preparing Taxes

How to Use Form 1098T When Preparing Taxes
Most college student will receive Form 1098-T from their educational institution.

Step 1

Obtain an original Form 1098T. There are copies available online for download, but the Internal Revenue Service only accepts the original version of the form that can be scanned. To order the form from the IRS, call 800-829-3676, or go to the IRS website and order the forms online. If you use the downloaded form, you will incur a $50 penalty for each form used.

Step 2

Fill in the information on the issuing institution. The issuing institution is the college, university or insurer that is required to file Form 1098T. Complete the name, address, zip code, phone number and federal identification number.

Step 3

Complete the demographic information for the student. This includes the student's name, address and Social Security number.

Step 4

Enter the amount of tuition and related expenses paid or reimbursed. If you're completing Form 1098T for a learning institution insert the figure in box 1. If you’re completing this form for an insurer, insert the reimbursed tuition and related expenses in box 2.

Step 5

Check whether or not the institution has changed its reporting method for 2010 in box 3. In other words, if the reporting method for 2010 is different than the method used in 2009, check the box.

Step 6

List scholarships, grants and prior year adjustments in boxes 4 through 6. Make sure to list the appropriate figure in the correct box

Step 7

Indicate whether or not the figures included in boxes 1 and 2 include amounts for the upcoming academic semester period of January through March, 2011. Box number 7 on Form 1098T allows you to notify the government if the amounts listed in box 1 and 2 include monies that normally would've been allocated in the following school semester.

Step 8

Insert the student status. Box 8 and 9 provides the IRS with information as to the whether or not the student is full or part time, or graduate or undergraduate. All that is required to complete boxes 8 and 9 is a check in the appropriate check box.

Step 9

Insert the total amount of tuition and expense reimbursement or refunds. Box 10 Is only to be completed by an insurer in teh business of refunding or reimbursing tuition costs to students. If you’re completing this for a learning institution, leave box 10 on form 1098T blank.