Resources
For more information regarding education credits, please see:
American Opportunity or Lifetime Learning
IRS form 8863
www.irs.gov
Filing Limits
For tax filing information such as filing limits, please see IRS Publication 501.
Tax Preparation Assistance
College of the Ozarks does not offer individual tax-related counsel or tax preparation assistance. If you require assistance with tax preparation, please visit the Tax Preparation Resources page for form information and locations.
Form 1098T and College Expenses
The FAQs below are for general information. Account specific inquiries regarding Form 1098T may be directed to the Cash Accounts Office via phone at 417.690.2501 or email cashaccts@cofo.edu.
What is Form 1098T? It is an informational statement that colleges are required to provide to certain students and the IRS to report: the total amount of qualified expenses paid by both the student and by C of O; all scholarships and grants received (for both qualified and non-qualified expenses); and whether the student was enrolled at least-half time.
What is a qualified/non-qualified expense? Qualified expenses are those eligible for a tax credit; non-qualified expenses are not eligible for a credit. C of O’s Cost of Education, part-time cost of education, and certain class-related fees are qualified expenses. Room and board and the HTS fee are non-qualified expenses. Qualified expenses paid by the student in 2023 are included in the amount in Box 1.
Who should receive a 1098T? Colleges are not required to provide a 1098T to students whose qualified expenses are paid entirely with scholarships. Because C of O provides 100% of the Cost of Education for full-time students, most C of O students will not receive a 1098Tstrong>. Students who paid for work hours, part-time class charges, or required class fees should receive a 1098T.
Since I received Form 1098T, will I qualify for a tax credit? Not necessarily. Two education tax credits are in place for 2023: The American Opportunity Credit and the Lifetime Learning Credit (both use IRS Form 8863). Under IRS guidelines, students or parents may claim an education tax credit based only on qualified expenses actually paid by the student or parent during the year. (Included in Box 1)
Does the amount in Box 1 of my 1098T equal the qualified expenses I can claim as a tax credit? No. The College is required to report in Box 1 amounts received for qualified expenses in 2023 from all sources, including federal/state grants, the C of O Cost of Education scholarship, and any student payments for work hours, part-time class charges, or required class fees. Students must review their payment records to determine if any amounts were paid “out of pocket” for qualified expenses. Examples of payments for qualified expenses include cash payments for these charges: work hours, part-time cost of education, and required class fees. You can check your payment history on Campusweb – Student tab – My Account Balances page. This page will also show if you owe or have any credit. You can click on the $$$ link to open the description.
Can I claim a tax credit for the amount I paid for room and board? No. Room and board charges are defined as non-qualified expenses. Payments for non-qualified expenses are not eligible for a tax credit.
My accountant says that the College must provide me with a form 1098-T? The College is not required by the IRS to furnish a Form 1098-T in the following instances:
- Payments for courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program.
- Enrolled student is a nonresident alien.
- Students whose qualified tuition and related expenses are entirely waved or paid entirely with grants/scholarships.
- Students for whom you do not maintain a separate financial account and whose qualified tuition related expenses are covered by a formal billing arrangement between an institution and the student’s employer or governmental entity, such as the Department of Veterans affairs or Department of Defense.
Are room and board scholarships taxable? Yes. Any scholarship used to pay for non-qualified expenses is considered taxable income to the student and should be reported on the student’s tax return (this includes the Summer Work Program and any other room and board scholarship). The IRS does not require colleges to issue any type of form to students showing these taxable scholarship amounts. More information regarding the taxability of the Summer Work Program and any other room and board scholarship can be found at www.cofo.edu<, under Admissions/Costs & Financial Aid/Tax Information.
Are CARES Act grants received in 2023 taxable? No, per IRS guidelines.
Who should I contact with questions? For questions about the amounts reported on the 1098T, contact Cash Accounts at (417)-690-2501 to set up an appointment. College of the Ozarks cannot provide tax advice to students or parents. For questions about tax credit eligibility or filing for the tax credit, consult Publication 970, the instructions for Form 8863, your tax advisor, or the IRS.