Income Tax Credit Form 1098T

Please contact the IRS directly or your tax advisor to determine if you qualify for an educational credit.

At the end of January, Saint Mary's College of California is required to provide students with IRS Form 1098T for the prior calendar year. This form is used by the taxpayer in the computation of any eligible tax credit. The forms are mailed to U.S. citizens or permanent residents attending classes at SMC and for whom reportable transactions (qualified tuition and related expenses) are reported for calendar year 2018. All forms are mailed to the student's address on file. An electronic form is available for review and printing through the student's GaelXpress account.

Please Note: This form is informational and serves to alert students that they MAY be eligible for federal income tax education credits. The 1098T is NOT meant to be an indicator of income.  It is not required to be submitted with your tax return.  Furthermore, receipt of the Federal 1098T form does NOT indicate eligibility for the tax credit. It contains information to assist the IRS (and you) in determining if you are eligible to claim education related tax credits. Your personal financial records serve as official supporting documents for your federal income tax return.  The information on the Federal 1098T form is only provided to assist you.  Please consult with your tax preparer if you have additional questions regarding how the 1098T relates to your specific tax preparation.

Until recently, the Internal Revenue Service (IRS) permitted colleges and universities to report qualified tuition and related expenses (QTRE) in Box 2 and leave Box 1 (payments received) blank.  All 1098T’s received from Saint Mary’s College to date have followed this method, showing amounts billed during the calendar year, rather than amounts paid. While we reported amounts billed to you, you were always restricted to the amounts paid (per your records) against those expenditures.

Beginning with the 1098T form for calendar year ending December 31, 2018, the College is now required to report amounts paid during the calendar year for qualified tuition and expenditures.  This change means that you will no longer see amounts billed but instead, payments made.  While this change will make your form look different, it is important to remember that the tax credit was always based on payments made during the applicable calendar year, and so the calculation of the credit should be the same.

What this means to you is the amount reported in Box 1 will include payments made by you during the calendar year (i.e. it will not include your spring 2018 payments if they were paid in December 2017 and may or may not include your spring 2019 payment, depending on the timing of your payment). Also reflected in Box 1 will be other forms of payment, such as scholarships and grants.

Scholarships and grants will continue to be reported in Box 5 as in past years.

PLEASE NOTE: SMC employees are NOT professional tax advisors and CANNOT give tax advice. We are prohibited from providing legal, tax, or accounting advice and we are not responsible for any use you make of this information.

Please contact a personal tax advisor for assistance. You may also contact the IRS directly at www.irs.gov or (800) 829-3676 / (800) 829-1040 and refer to IRS Publication 970 Tax Benefits for Higher Education.