1098T Tax Information

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. 

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 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. 

There are potentially many reasons for this discrepancy. First, the amount in Box 1 only represents amounts paid for qualified tuition and related expenses (QTRE) and does not include payments made for room and board, insurance, books, or parking which, though important, are not considered mandatory education expenses for tax purposes. Secondly, Form 1098-T reports amounts that the student paid in a certain year, and the pay date does not necessarily correspond to the dates that the classes were attended. For example, tuition for the Spring semester is typically billed in November so a student may have paid tuition for the Spring semester in 2021 despite the fact that classes didn’t start until 2022. The best and most accurate source of information about the amounts that you paid for qualified tuition and related expenses will be your student account statement.

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.

For an overview of the American Opportunity 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 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. 

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 College, then your form may have gone astray. 

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.