Policy Watch

Final 1098-T Reporting Rules and Regulations Issued By IRS.(PDFs) Education Tax Credit Final Regulations This document contains final regulations relating to the Hope Scholarship Credit and the Lifetime learning Credit under section 25A of the Internal Revenue Code. Reporting for Qualified Tuition and Related Expenses; Magnetic Media Filing Requirements for Information Returns This document contains final regulations relating to the information reporting requirements for qualified tuition and related expenses under section 6050s of the Internal Revenue Code.

TCRS Offers Comments on Proposed Regulations: TCRS analysis Comments to IRS Tuition Payments Statement Instructions. On April 29, 2002, the Internal Revenue Service issued proposed rules in the Federal Register regarding the Hope and Lifetime Learning education tax credits. The TCRS team analyzed the proposed rules, and provided the IRS with comments on the pending regulations.

TCRS keeps you up-to-date with TRA '97 regulatory information. You can download the latest regulation documents below.

Hope and Lifetime Learning Tax Credits Documents. To view and print PDF files, you will need to download Adobe Acrobat Reader

IRS Issues Proposed 6050S Regulations (April 29, 2002).(PDF) REG-161424-01 On April 29, 2002, the IRS issued new proposed regulations related to the reporting requirements under section 6050S for qualified tuition and related expenses.

Simplification of Reporting Requirements Relating To Higher Tuition and Related Expenses (December 4, 2001). H.R. 3346 On December 4, 2001, the U.S. House of Representatives passed H.R. 3346; a bill aimed to simplify the 1098-T reporting requirements for eligible institutions. The bill will amend §6050S of the Internal Revenue Code as stated below. Reporting institutions will no longer be required to collect and report information to taxpayers who may claim a student as a dependent. Institutions will have the option of reporting either aggregate amounts of qualified tuition and expenses paid by or on behalf of the student or amounts billed to the student. Institutions would report adjustments to amounts reported in prior years rather than all refunds and reimbursements to applicable students.

Economic Growth and Tax Relief Reconciliation Act of 2001 (June 7, 2001). H.R.1836 This bill provides for a $1.35 trillion tax cut that includes several provisions aimed at helping students and families pay for college.

Electronic Payee Statements.(PDF) TD 8942 The IRS has issued new regulations that would allow for the furnishing of 1098-T statements in an electronic format. TCRS now provides the option for students to consent to receive their forms in an electronic format via the www.1098-T.com web site.

Extension of Waiver Period. IRS Notice 2000-62 The IRS will not require financial information (e.g., the amount of qualified tuition and related expenses received and/or reimbursed) to be reported on the 1098-T statement until at least 2002. The proposed regulations published in June 2000 indicate that financial reporting will become mandatory but these regulations have not yet be finalized and approved.

Notice of Proposed Rulemaking--Education Tax Credits (January 6,1999). NPRM This document contains proposed regulations relating to the information reporting requirements under section 6050S of the Internal Revenue Code for payments of qualified tuition and related expenses and interest on qualified education loans, including the filing of information returns on magnetic media. The regulations reflect changes to the law made by the Taxpayer Relief Act of 1997.

Tax Benefits for Higher Ed (November, 2000).(PDF) IRS Publication 970 This document explains the tax benefits for persons who are saving for or paying higher education costs for themselves and members of their families. It includes information on the Hope and Lifetime Learning Credits.

1998 Reporting Requirements for Institutions (December, 1997). IRS Notice 97-73 This notice provides details related to 1098-T reporting requirements.

Hope and Lifetime Learning Credits. Section 25A The Internal Revenue Code Section 25A provides detailed information about the Hope Scholarship Credit and the Lifetime Learning Credit. Details included, but limited to, are: information about the total amount of credit available under each credit, applicable limitations of the credit, definitions of terms and conditions applicable to the credits, income limits and eligibility.

Returns Relating to Higher Education Tuition and Related Expenses. Section 6050S These regulations provide information on how eligible educational institutions should report student financial records in relation to 1098-T reporting.

IRS Restructuring and Reform Act. Conference Report Excerpt This document provides information on 1098-T reporting requirements.

Forms and Filing Instructions for 1098-T Reporting. To view and print PDF files, you will need to download Adobe Acrobat Reader

Tuition Payments Statement.(PDF) Form 1098-T IRS form to be prepared and distributed for all eligible students. The IRS indicates that the format may vary provided that all required information is presented. This information is used to help students determine the amount of credit for which they are eligible.

Tuition Payments Statement Instructions.(PDF) Form 1098-T Instructions Tuition Payments Statement Instructions. IRS guidelines for 1098-T reporting. Details included in the document include but are not limited to: details about filing information with the IRS, potential penalties, deadlines for filing, and how to make corrections.

Request for Student’s or Borrower’s Social Security Number and Certification.(PDF) Form W-9S Request for Student’s or Borrower’s Social Security Number and Certification. A student or borrower would use this form to provide a correct SSN to an educational institution. The institution needs a correct SSN in order to report student or borrower financial information to the IRS.