Tax Credits and Deductions for College Education

The 2020 1098T Form is now available. Yuba Community College District (YCCD) is providing you the form, known as 1098-T, in order to help you determine whether you, or the person who may claim you as a dependent, qualifies for a federal tax credit.

Depending on your income (or your family’s income, if you are a dependent), whether you were considered full or half-time enrolled, and the amount of your qualified educational expenses for the year, you may be eligible for a federal education tax credit.  The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863 – the form used for calculating the education tax credits that a taxpayer may claim as part of your tax return.

FREQUENTLY ASKED QUESTIONS:
What is Form 1098-T (Tuition Payments Statement)?
How do I access my 1098-T form?
What are the boxes on the form?
What if I think the information on the 1098-T is incorrect?
I do not have a 1098-T form, why?
What if my 1098-T form has no dollar amounts on it?
What if I have further questions?

What is Form 1098-T (Tuition Payments Statement)?
Eligible educational institutions are required by the federal government to provide Form 1098-T to students for whom payments for qualified billed tuition and fees were received in calendar year 2020.

How do I access my 1098-T form?

  1. Login to Self Service
  2. Click on Tax Information
  3. Select your preference: Receive my 1098 only in electronic form
  4. Choose the 2020 Tax Year

What are the boxes on the form?

In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) we billed to your student account for the calendar (tax) year. Due to a change to institutional reporting requirements under federal law, beginning with the tax year 2018, we will report in Box 1 the amount of QTRE you paid during the year.

  • Box 1 – Shows the total payments received by an eligible educational institution in 2020 from any source for qualified tuition and related expenses less any reimbursements or refunds made during 2019 that relate to those payments received during 2020.
  • Box 2 -Reserved.
  • Box 3 – Yuba Community College District changed its reporting method (2018 only) to payments received (from 2017 reporting method amounts billed).. You should be aware of this change in figuring your education credits.
  • Box 4 – Shows any adjustment made for a prior year for qualified tuition and related expenses that were reported on a prior year Form 1098-T.
  • Box 5 – Shows the total of all scholarships and grants.  Loans and Emrgency Aid are not included.
  • Box 6 – Shows adjustments to scholarships or grants for a prior year.
  • Box 7 – Shows whether the amount in Box 1 includes amounts for an academic period beginning January-March 2021.
  • Box 8 – Shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study. If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the Hope credit.
  • Box 9 – Not applicable.
  • Box 10 – Not applicable.

What if I think the information on the 1098-T is incorrect?
If you believe the information provided is incorrect, please contact the Registration office at your college.

I did not receive a 1098-T form, why?
There are several possibilities:

    • You do not have a Social Security Number on file with Yuba College or Woodland Community College.
    • The IRS does not require us to provide you one if your scholarship and / or financial aid (including formal billing arrangements with employers or governmental agencies) exceed or is equal to the billed amount.
    • You attended either Yuba College or Woodland Community College in Spring 2020 but you had enrolled and been billed in calendar year 2019.
    • We do not have a valid United States mailing address on file for you.
    • You are classified as a non-resident alien.
    • Your billed amounts consisted of only non-credit courses.
  • You did not have qualifying tuition during 2020 or prior year carryover for the payments received in 2020.

What if my 1098-T form has no dollar amounts on it?
If you enrolled in classes and then dropped those classes in 2020 you may receive a 1098-T Form that shows no activity. Additionally, 2020 students that paid for their classes in 2019 may receive a 1098-T form with no financial activity.

What if I have further questions?
YCCD has provided the forms in compliance with the IRS guidelines. YCCD is unable to provide you with individual tax advice, but should you have questions, you should seek the counsel of an informed tax preparer or adviser or visit irs.gov for complete instructions.

Emergency Financial Aid:

Q1: I am a student who received an emergency financial aid grant under section 3504, 18004, or 18008 of the CARES Act for unexpected expenses, unmet financial need, or expenses related to the disruption of campus operations on account of the COVID-19 pandemic. Is this grant included in my gross income?

A1: No. Emergency financial aid grants under the CARES Act for unexpected expenses, unmet financial need, or expenses related to the disruption of campus operations on account of the COVID-19 pandemic, such as unexpected expenses for food, housing, course materials, technology, health care, or childcare, are qualified disaster relief payments under section 139 of the Internal Revenue Code. This grant is not included in your gross income.

Q2: I received an emergency financial aid grant under the CARES Act and used some of it to pay for course materials that are now required for online learning because my college or university campus is closed. Can I claim a tuition and fees deduction for the cost of these materials, or treat the cost of these materials as a qualifying education expense for purposes of claiming the American Opportunity Credit or the Lifetime Learning Credit?

A2: No. Because the emergency financial aid grant is not includible in your gross income, you cannot claim any deduction or credit for expenses paid with the grant including the tuition and fees deduction, the American Opportunity Credit, or the Lifetime Learning Credit. See section 139(h) of the Internal Revenue Code.

Q3: Do higher education institutions have any information reporting requirements under section 6050S for emergency financial aid grants awarded to students under section 3504, 18004, or 18008 of the CARES Act? (added December 14, 2020)

A3: No. The emergency financial aid grants are qualified disaster relief payments, as described in A1 above, and are not included in students’ gross income. As noted in A2 above, students may not claim deductions or credits for these amounts. The reporting of these grants to the IRS on Forms 1098-T could result in the issuance of underreporter notices (Letters CP2000) to students and furnishing such Forms 1098-T to students could cause confusion. Thus, the IRS will not require that these grants be reported pursuant to section 6050S of the Internal Revenue Code on Form 1098-T.

https://www.irs.gov/newsroom/faqs-higher-education-emergency-relief-fund-and-emergency-financial-aid-grants-under-the-cares-act  Last Reviewed or Updated: 14-Dec-2020