The IRS requires OCU University provide a 1098-T Statement to students for use in completing their annual income tax return. Students may be able to reduce their federal income tax liability by claiming an American Opportunity Tax Credit (expanded and renamed Hope Scholarship credit), Lifetime Learning Education Tax Credit, or a Higher Education Tuition and Fees Deduction. These benefits apply to tuition and related expenses paid by the student or on his/her behalf.
New Changes to IRS Reporting Requirements on Form 1098-T
Beginning in tax year 2018, all eligible educational institutions were required by the IRS to report payments received (Box 1 on the 1098-T form) for Qualified Tuition and Related Expenses (QTRE). The amount in Box 1 cannot exceed the total amount of Qualified Tuition and Related Expenses for the 2018 tax year. Box 1 may also include payments made for past-due QTRE for items billed in a previous calendar year. Amounts billed (Box 2), will now be blank on the 1098-T form. Scholarships and grants will continue to be reported in Box 5 as they have been in previous years.
Frequently Asked Questions:
The 1098-T form is used by eligible educational institutions to report information about their students to the IRS. A 1098-T form is for informational purposes only and is provided to each student that qualifies to receive one. The 1098-T form serves to alert students that they may be eligible for federal income tax education credits. Eligible educational institutions are required to submit the student’s name, address, taxpayer’s Identification number, enrollment status, academic status, payment amounts (up to the amount of QTRE), and scholarship and grant amounts for each tax year.
Please Note: It is the taxpayer’s responsibility to determine their eligibility for educational credits. Representatives of OCU University do NOT give tax advice. We advise you to contact your tax professional for more information regarding tax matters.
Qualified Tuition and Related Expenses (QTRE) are items that were billed to a student during the 2018 tax year. These amounts include any tuition charged as a result of being enrolled at OCU University. All required fees associated with those tuition charges are also considered to be QTRE. See below for examples of items that are and are not considered QTRE.
QTRE:
- Tuition
- University General Fees
- Class Specific Fees
Not QTRE:
- Housing
- Meal Plan
- Parking Permit/Citations
- Books & Supplies
- Other Fines
Certain fees are excluded because they do not meet the tax code requirements for educational expenses. Consult your accountant, tax preparer, or the for more information.
Box 1 includes the amount of QTRE that you paid during the 2018 tax year. Payments for non-qualified items (housing, meal plan, parking permit/citations, books/supplies, and fines) will NOT be included in this amount.
Please Note: Beginning in tax year 2018, the amount in Box 1 CANNOT exceed the total amount of Qualified Tuition and Related Expenses (QTRE).
Box 5 includes certain forms of educational aid that were applied to your student account during the tax year. This amount includes all scholarships administered and processed by OCU University through the Student Financial Services office. This also includes amounts received through minister’s remission and the university’s employee tuition remission programs. Students who receive scholarships directly from outside sources (funds that are paid directly to the student) are NOT included in Box 5.
Please Note: Scholarships specifically designated to cover housing and/or meal plan costs will NOT be included in Box 1.
The 1098-T form serves to alert students that they may be eligible for federal income tax educational credit. Receipt of a 1098-T from does NOT indicate a student’s eligibility for a tax credit. To determine the amount of qualified tuition and related expenses paid, and the amount of scholarships or grants received, a taxpayer should use their own financial records and if necessary, seek the expertise of a tax professional. OCU University representatives DO NOT give tax advice.
For more information regarding Education Credits, please review IRS Publication 970 located at
