1098T Tax Information

What is the 1098-T form?

The main purpose of the form 1098T is to help students, and their families, determine if they are eligible to receive two tax credits:  the American Opportunity Credit (also referred to as the Hope Credit), and the Lifetime Learning Credit. We follow Internal Revenue Code section 6050S and the corresponding regulations in reporting Form 1098T, Tuition Statement, for each year a student is enrolled at Lake Forest College. All eligible educational institutions are required to submit the student’s name, address, and taxpayer’s identification number (TIN), enrollment and their academic status. Beginning with 2003, educational institutions must also report amounts to the IRS pertaining to qualified tuition and related expenses, as well as scholarships and/or grants, taxable or not. A 1098-T form must also be provided to each applicable student. This form is informational only. It serves to alert students that they may be eligible for federal income tax education credits. It should not be considered as tax opinion or advice. While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax credit. There is no IRS requirement that you must claim the tuition and fees deduction or an education credit. Claiming education tax benefits is a voluntary decision for those who may qualify.

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

In January of each year, Lake Forest College partners with ECSI to mail 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. This form is informational only and should not be considered as tax opinion or advice. It serves to alert students and their families that they may be eligible for federal income tax education credits. Receipt of Form 1098-T does not indicate eligibility for the tax credit. To determine the amount of qualified tuition and fees paid, and the amount of scholarships and grants received, a taxpayer should consult with their tax professional.

Did you send a copy of this form to the IRS?

Yes. Section 6050S 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 (Hope) and Lifetime Learning education tax credits. The deadline for institutions to provide this information to the IRS is March 31, although the data may be transmitted earlier.

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

Included

Not Included

  • Graduate and Undergraduate Tuition
  • Activity fees
  • Orientation fees
  • Room and Board charges
  • Bookstore charges
  • Library fines
  • Health Center and Recreation Center fees

 

 

Why is there not an amount in box 1?

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. Once an institution has selected one of these options, they cannot change reporting methods between calendar years without IRS permission. Lake Forest Colleg reports qualified tuition and related expenses that were billed during the tax year (Box 2) and scholarships and grants, therefore, Box 1 – Payments Received for Qualified Tuition and Related Expenses, will be blank.

What other information do I need to claim the tax credit?

While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax credit. Most of the information needed must come from the family’s financial records of what the student paid during the calendar year. Additionally, each taxpayer and his or her tax adviser must make the final determination of qualifying expenses.

What are the American Opportunity Credit and the Lifetime Learning Credit and what are allowable tuition and fee tax deductions for each?

For an overview of the American Opportunity (Hope) Credit, Lifetime Learning Credit, and allowable tuition and fee tax deductions visit http://www.irs.gov/uac/Tax-Benefits-for-Education:-Information-Center. Not all students who pay qualified expenses are eligible for a tax credit. For example, both credits have an income cap. Students who have a Modified Adjusted Gross Income (MAGI) greater than or equal to $80,000, or $ 160,000 for those filing a joint return, are not eligible for the American Opportunity (Hope) or Lifetime Learning credit. Each student can only claim one of these tax credits per year. You are also prohibited from claiming a tuition and fees deduction and an education tax credit for the same student for the same year. 

My address listed on the 1098-T has changed. Will this affect me?

Possibly. IRS regulations require mailing your 1098-T to your permanent address, not your local or campus one. If you did not have a current address on file with the University, then your form may have gone astray.

How do I get a reprint of my 1098-T form?

If you did not receive a 1098-T due to a change of address, or you misplaced the form, you can print a duplicate. Students can access the 1098-T forms online by going to

www.ecsi.net/myacct <http://www.ecsi.net/myacct> To access your 1098T you will need the following 3 pieces of information: 

School Code               = 4D

Account                      = SSN without dashes

Password                    = pin number assigned by ECSI.

The PIN number was included with the original mailing. For assistance with accessing the 1098T, please call the ECSI 1098-T hotline number at 1-866-428-1098 or following the instructions under Option 1. View Login Credentials. 

What is LFC’s Tax Identification Number?

The Federal Identification Number (FIN) for Lake Forest College is 36-2167770. This number can also be found on the 1098-T form in the middle left section.

Note: Please be advised that LFC is prohibited from providing legal, tax, or accounting advice to students and we are not responsible for any use you make of this information.

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