1098-T Tax Information | Messiah, a private Christian University in PA

What is the Form 1098-T?

Messiah University files a Form 1098-T to the IRS for each student enrolled and for whom a reportable transaction is made.

Depending on your income (or your family’s income, if you are a dependent), whether you were enrolled full or half-time, and the amount of your qualified educational expenses for the year, you may be eligible for a federal education tax credit. (You can find detailed information about claiming education tax credits in IRS Publication 970, page 9.)

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.

Please Note: Messiah University is unable to provide you with individual tax advice, but if you have questions please consult a tax preparer or adviser.

What are the amounts in each of the boxes on the Form 1098-T?

It is important to understand that academic years are not the same as tax years. The amounts on the 1098-T consist of charges assessed and payments made in a calendar year.

Listed below is a general explanation of each box on the Form 1098-T in order to help understand the financial data reported on the form.

Box 1 - Payments received for qualified tuition and related expenses: Reports the total payments received for qualified tuition and related expenses during the calendar year. Box 1 is capped at the total QTRE billed. Please note, IRS Publication 970 states, "the amount on form 1098-T might be different from the amount you actually paid and are deemed to have paid." Further IRS Form 8863 instructions state that "The amount of qualified tution and related expenses reported on Form 1098-T may not reflect the total amount of the qualified tuition and related expenses paid during the year for which you may claim the tax credit. You may include qualified tuition and related expenses that are not reported on IRS Form 1098-T when claiming one of the related credits if you can substantiate payment of these expenses."

It is important to take note of the timing of each charge and payment/scholarship on the student account regarding which year they are reported in. Please consult a tax preparer or adviser regarding this implication for your individual tax situation.

Box 4 - Adjustments made for a prior year: The amount is Box 4 reports any adjustments made for a prior year for qualified tuition and related expenses that were reported on a prior year Form 1098-T. This amount may reduce any allowable education credit that you claimed for the prior year. See "recapture" in the index to Pub. 970 to report a reduction in your education credit or tuition and fees deduction.

Please note it is possible for other boxes to be empty and only have a number in Box 4. This means there was a reduction in qualified tuition and related expenses calculated on a prior year Form 1098-T that was reduced after December 31st, but had no other other reportable activity for the current calendar year. Consult a tax advisor or preparer and/or IRS Form 8863 and IRS Publication 970 for assistance.

Box 5 - Scholarships or grants: Reports the total of the scholarships or grants administered and processed by Messiah University during the calendar year. The amount in Box 5 may reduce the amount of education credit you claim for the year.

It is important to take note of the timing of each charge and scholarship on the student account regarding which year they are reported in. Please consult a tax preparer or adviser regarding this implication for your individual tax situation.

Based on guidance provided by the IRS, we have not included any CARES HEERF Funds that were awarded to students in the 1098-T. See IRS Frequently Asked Questions concerning CARES HEERF Fund Awards.

Box 6 - Adjustments to scholarships or grants for a prior year: Reports any adjustments or reductions in scholarships or grants that were reported on a prior year Form 1098-T. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year.

Additional Information Reported

Box 7: Shows whether the amount in Box 1 includes amounts for an academic period beginning January-March 2023. See IRS Publication 970 for how to report these amounts.

Box 8: Shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study.

Box 9: Shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential.

To view an electronic version of your 1098-T now, please log in to FALCONlink and select "Transact/CASHNet eBill (Student)". The 1098-T will be accessible under "Tax Forms".

Helpful links, publications and forms:

IRS Form 1098-T
IRS Publication 970 - Tax Benefits for Education
IRS Form 8863 - Education Credits (American Opportunity and Lifetime Learning Credits)
IRS Publication 5197 - Why Form 1098-T is important to you?

Frequently Asked Questions

When will I receive the Form 1098-T?

All 1098-T forms will be mailed no later than January 31st. Students can view their 1098-T electronically on FalconLink - Transact/CASHNet Ebill (Student). The 1098-T form will be accessible under "Tax Forms".

What is considered Qualified Tuition and Related Expenses (QTRE)?

Eligible charges include tuition and fees required to enroll at or attend an eligible educational institution, and course-related expenses, such as books, supplies, and equipment that are required for the courses at the eligible educational institution. These items must be required of all students in your course of instruction. For more information please see IRS Publication 970, Tax Benefits for Education.

Why don't the amounts on Form 1098-T equal the amounts I paid to Messiah University during the year?

There could be multiple 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 and other fees that are not considered mandatory education expenses for tax purposes or QTRE. 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 or the to the dates the charges were applied. The best and most accurate source of information about the amounts that you paid for qualified tuition and related expenses will be your CashNet/Transact eBill.

What semesters are included in my Form 1098-T?

Typically, charges are posted to your student account in November for the Spring semester and in July for the Fall semester. Box 1 of Form 1098-T reflects payments made during the calendar year for qualified tuition and related expenses and it is not based on when the classes were attended or billed to the student account. Your CashNet/Transact eBill will show the dates payments were posted to your account and are an important resource for determining the semesters that are included in your Form 1098-T.

Why is graduate student checked in Box 9 if I am not a graduate student?

This box is checked if the student was a graduate student in at least one semester during the calendar year being reported.

What are the American Opportunity Credit and the Lifetime Learning Credit?

There are various education related tax benefits. For more information, please view IRS Publication 970.

I don't understand what I'm supposed to do with this Form 1098-T. HELP!

We are unable to provide tax advice. For guidance you may want to consider IRS Publication 970 in addition to consulting a tax advisor or professional.