- Form 1098-T Information
- Tax Information for Scholarships and Fellowships
- Canadian Tax Reporting
Form 1098-T Information
1098-T forms for 2013 will be available online through the ConnectCarolina Student Center before the Jan. 31, 2014, mailing deadline.
Please allow 10 days for 1098-Ts mailed to students who did not choose electronic delivery.
QUESTIONS about your 1098-T or how to access it online?
Students can access the ConnectCarolina Student Center by visiting connectcarolina.unc.edu and use dropdown menus to access their 1098-T form.
Purpose of the Form 1098-T
The IRS requires the University to issue Form 1098-T, “Tuition Payments Statement,” to each student by Jan. 31. Form 1098-T is an information tax document to aid taxpayers in determining whether they are eligible to claim a tax deduction or one of the education tax credits on their federal income tax return. Form 1098-T is NOT to be filed with a tax return. Its purpose is not to report scholarship income to the IRS. It is for informational purposes only.
The IRS requires the student’s social security number be printed on 1098-T forms. If the number printed on your form is incorrect, please present your Social Security card to a member of the Records Section in the Office of the University Registrar. This documentation is required in order to update the social security number that the University has on record. The deadline to submit the correct Social Security Number (SSN) is July 15. The corrected 1098-T form will not be issued until AUGUST.
Social Security Number for International Students
The majority of international students are *NOT* eligible to claim education expense tax credits on their federal tax forms since, as international students, they do not meet one of these categories:
- U.S. citizens
- Permanent residents (P.R.)
- Married to a citizen or P.R.
- Can legally be claimed as a dependent by a U.S. citizen or P.R.
- Have been in the United States long enough to file taxes as a resident for federal tax purposes
Only students in these categories above can claim tax deductions or education tax credits and use the 1098-T. If you are an international student, the University will not file a 1098-T form on your behalf unless you have an individual taxpayer identification number (ITIN) or SSN on your student record. The deadline to provide the identification number or social security number is Jan. 15. Please complete Parts I and III (enter your 10-digit PID under “Tuition account number” in Part III) of the IRS form available online at http://www.irs.gov/pub/irs-pdf/fw9s.pdf and return it to the Office of the University Registrar in person, by fax or by mail, using the following contact information:
Office of the University Registrar
Campus Box 2100
Chapel Hill, NC 27599
Office location: Third floor of SASB North
Fax: (919) 962-1655
For security reasons, please do not send the completed form by email.
Please access your account history in the ConnectCarolina Student Center to obtain a record of your payment information. The University has chosen to report the “Total Amounts Billed” to you during the tax year (Box 2), so you will need your payment information from the ConnectCarolina Student Center in order to calculate your tax credit or deduction.
Box 5 includes the amount of all scholarships or grants received in the calendar year reported, regardless of the term for which they were intended. This is because we are required to report the amounts received in the year received. The instructions for this box indicate that this amount, along with those not reported by us, may reduce the deduction or credit.
The following required fees have been EXCLUDED from the charges in Box 2 based on the University’s interpretation of the definition of “qualified tuition and related expenses” found in the federal regulations:
- FEE Student Health (Student/Campus Health Fee)
- FEE Safety and Security
- FEE Student Transit/Safe Ride Fees
- FEE Student Child Care Service
- Student Health Insurance Fee
- Late Registration
- Biostatistics Field Training (PH Field Trng-BIOS) for BIOS691
- Health Behavior and Health Education Field Training (PH Field Trng-HBHE) for HBHE740, HBHE840, HBHE841, HBEH746, HBEH840 and HBEH841
- Maternal and Child Health Field Training (PH Field Trng-MHCH) for MHCH717, 790 and 795
- Nutrition Field Training (PH Field Trng-NUTR) for NUTR650, 710, 730, and 735
- Public Health Nursing Field Training (PH Field Trng-PHNU) for PHNU886
“Qualified expenses” for this purpose are defined more narrowly than they are for other programs, such as a 529 plan. To assist in supplementing your own records, students can access their account activity by logging in to the ConnectCarolina Student Center and selecting the “Pay Bills/Manage Student Finances” link. Account Activity includes all transactions posted to the student account during the calendar year.
We cannot adjust your 1098-T qualified charges to include transactions specifically excluded by tax credit programs such as room and board. You must use your own records of payments in addition to the information about qualified charges we provide to determine your eligibility for a tax credit in any given calendar year.
Student-activity fees and fees for course-related books, supplies and equipment are included in qualified tuition and related expenses only if the fees must be paid to the institution as a condition of enrollment or attendance.
Qualified tuition and related expenses generally do not include:
- Expenses that relate to any course of instruction or other education that involves sports, games, or hobbies, or
- Any noncredit course.
However, if the course of instruction or other education is part of the student’s degree program or, in the case of the lifetime learning credit, is taken by the student to acquire or improve job skills, these expenses can qualify.
Institutions are required to report either the payments received for qualified charges or the amounts billed for qualified charges.
On the 1098-T, we report the name, SSN and address of students, and indicate whether they were a graduate student or at least half-time during the calendar year.
If Box 1 on your 1098-T form is blank, visit the IRS website for more information.
If you qualify for an educational credit, you should use your personal records and student account activity statements to determine the amounts that you actually paid toward the charges reported on the 1098-T.
We are required to report all qualified transactions in the actual calendar year during which they were posted to your account, regardless of when you pay them. Therefore, Spring semester charges usually post to your student account prior to Jan. 1 and must be reported on the 1098T in the tax year that they are posted. However, you may qualify for the tax credit for the tax year that you paid these Spring semester charges.
If you need more information than is available on your 1098-T form, you may access an account itemization by accessing the ConnectCarolina Student Center and selecting “Pay Bills/Manage Student Finances.”
Our office cannot provide any tax advice, only confirm and explain what we have reported. For more information about your ability to claim a tax deduction or tax credit, contact a tax professional. Also, you can visit the Internal Revenue Service’s web site at www.irs.gov. IRS Publication 970, “Tax Benefits for Education,” and IRS Bulletin 2006-72 are good resources for information on this topic.
If you did not receive your 1098-T, you can find a copy in your ConnectCarolina Student Center account by selecting “View 1098-T” from the drop-down menu.
If you believe the transaction amounts on the 1098-T are incorrect, please email email@example.com and include your PID in the email.
Tax Information for Scholarships and Fellowships
This information is not intended as tax advice and you are encouraged to seek the assistance of a tax advisor.
The Tax Reform Act of 1986 contained provisions regarding the federal income tax treatment of scholarships and fellowships. If you receive a scholarship or fellowship grant from the University or from any other source, you should be aware of the following:
- Under federal tax law, only qualified scholarships or fellowships may be excluded from the recipient’s gross income.
- Qualified scholarships or fellowships are amounts awarded to degree candidates and used for educational expenses such as tuition, required fees, books, supplies and equipment required for courses of instruction. If the award specifies that any portion of the scholarship or fellowship may not be used for these described expenses or if it designates any portion of the award for purposes other than those expenses just described, those designated amounts are not qualified scholarships or fellowships. Awards in excess of the described expenses are includable in the recipient’s gross income.
- An individual who is not a candidate for a degree must include in gross income any amount received as a scholarship or fellowship grant.
- A scholarship or fellowship which is conditioned upon past, present or future services by the recipient is not a qualified scholarship or fellowship and may not be excluded from the recipient’s gross income.
Included within the definition of scholarships and fellowships and thus possibly subject to taxation, are scholarship and fellowship grants awarded on the basis of academic merit, talent, financial need or any other factors; state and federal grants, including Pell Grants; athletic grants-in-aid; graduate fellowships or other non-service awards; and tuition remissions or reductions. Awards may come from the University, from state or federal agencies or from private organizations.
Tax Withholding and Reporting
For U.S. citizens and resident aliens, the University is not required to report scholarships or fellowships to the Internal Revenue Service; reporting such income for tax purposes is the sole responsibility of the recipient.
For nonresident aliens, scholarships and fellowships may be subject to federal income tax withholding based on the student’s visa type, the degree path of the student, and the existence of a U.S. tax treaty with the student’s country of residence. The federal income tax withholding rate may be 0%, 14% or 30% depending on the circumstances, and the tax rate may apply to a portion of the scholarship or fellowship.
The withholding rate for a nonresident alien using tax treaty provisions would be 0% or another rate based on the treaty. If a tax treaty is not used, the withholding rate would be 14% of taxable portion for individuals with F, J, or M visas and 30% of taxable portion for others. The taxable portion for students not seeking a degree is the total amount of the financial aid award. The taxable portion for students seeking a degree is the total amount of the financial aid award less qualified educational expenses.
IRS tax regulations require that scholarship and fellowship awards for nonresident aliens be reported to the IRS and to the recipient after each calendar year on Form 1042S – Foreign Person’s U.S. Source Income Subject to Withholding. Form 1042S is used to report taxable scholarship/ fellowship payments made, income tax withheld, and other information relating to the grant payments.
It is important that you keep copies of documents which will establish the amounts of scholarship and fellowship awards and the amounts paid for tuition, required fees, books, supplies and course-related equipment. Your records should include award notices from the University or awarding agency, check stubs from scholarship or fellowship payments, receipts from the Office of Student Accounts and University Receivables and receipts from the purchase of books, supplies and equipment.
Canadian students may request that SAUR provide the Canadian tax form TL11A. This form verifies the registration status of the student and provides the total dollar amount of tuition charged during the calendar year. Submit requests by email to firstname.lastname@example.org from your ONYEN email address. The subject of the email should be “Canadian Tax Form” and your PID. In the email message, please include your full name, your mailing address and the time period(s) for which you need the tax form. You may come by in person with a photo ID to pick up the completed form or we can mail it to your address. Please allow three business days for this to be completed.