1098-T Frequently Asked Questions
Below are answers to the most frequently asked questions our office receives regarding 1098T tax information. Click on the question to view the answer.
DISCLAIMER: CALIFORNIA STATE UNIVERSITY, SACRAMENTO DOES NOT ASSIST IN TAX PREPARATION, ACT AS A TAX CONSULTANT FOR INDIVIDUALS OR ENTITIES, PROVIDE TAX ADVICE, AND CANNOT ANSWER YOUR TAX QUESTIONS. PLEASE CONSULT A TAX PROFESSIONAL, THE IRS, OR A FINANCIAL PLANNER WHO IS PROFICIENT WITH TAXATION WITH YOUR TAX QUESTIONS. EACH STUDENT AND/OR THEIR PARENTS MUST DETERMINE ELIGIBILITY FOR, CALCULATION OF, AND LIMITATION ON THE TUITION AND FEES DEDUCTION OR THE EDUCATION CREDITS (HOPE OR LIFETIME LEARNING CREDIT). WHILE THE UNIVERSITY HAS MADE EVERY EFFORT TO USE THE MOST CURRENT AND ACCURATE DATA, TAX LAWS CHANGE FREQUENTLY, AND IT IS POSSIBLE THAT SOME OF THE INFORMATION MAY NO LONGER BE ACCURATE. THE UNIVERSITY DISCLAIMS ALL LIABILITY FROM THE MISTREATMENT OF INFORMATION AND MATERIALS CONTAINED IN THIS DOCUMENT. INFORMATION REGARDING IMMIGRATION, EMPLOYMENT, AND TAX SUBSTANTIAL AUTHORITY ARE THE RESPONSIBILITY OF EACH INDIVIDUAL. PLEASE KEEP IN MIND THAT NO ONE FROM CALIFORNIA STATE UNIVERSITY, SACRAMENTO, WHILE IN THEIR OFFICIAL ROLE AT THE UNIVERSITY, CAN ACT AS A TAX CONSULTANT, GIVE PERSONAL, LEGAL, OR TAX ADVICE, OR REPRESENT AN INDIVIDUAL DEALING WITH THE INTERNAL REVENUE SERVICE (IRS). THUS, ANY ASSISTANCE THE ABOVE INFORMATION MAY PROVIDE IS GIVEN AS A COURTESY TO YOU, AND AS SUCH, SHOULD NOT BE CONSTRUED IN ANY WAY AS THE RENDERING OF LEGAL OR TAX ADVICE.
A 1098T is an IRS form that colleges must provide any student who had qualified educational expenses in the preceding tax year (January – December). This form provides information about educational expenses that may qualify the student -- or the student's parents -- for the tuition-and-fees tax deduction or education-related tax credits.
Not all of the fees that you pay to Sacramento State are considered “qualified” by the IRS. The following line items are included on the 1098T: Tuition Fee, ASI Fee, IRA Fee, Newspaper Fee, and University Union Fee.
If you are eligible to receive a 1098T, then we will provide one that will be available online through your MySacState Student Center no later than January 31st each year. In the Finances section, select View 1098T from the drop-down menu. For information on why you may not have a 1098T, see below.
You can view all available 1098Ts from the same place in your MySacState Student Center.
You can use the information provided to determine if you are eligible for education tax credits. You are not required to attach IRS Form 1098T to your tax return. Please note that there is no IRS requirement that you claim a tuition-and-fees deduction or an education-related tax credit.
We cannot offer tax advice. If you have such questions, you should consult with a qualified tax professional or contact the IRS Taxpayer Assistance line at 1-800-829-1040. The IRS web site also has information here:
Yes. We are required to inform the IRS to assist them in determining who may be eligible to claim the tuition-and-fees deduction or an education credit. But there is no IRS requirement that you claim a tuition-and-fees deduction or an education-related tax credit.
The University reports on amounts BILLED, so we use Box 2 instead of Box 1. This reflects when you were CHARGED and NOT when those charges were paid. This method of reporting is approved by the IRS.
Your receipts will show when you paid, which would not match Box 2 because it shows when you were charged. In addition, not all charges are considered qualified expenses by the IRS. Box 2 only includes qualified expenses.
Box 5 shows the amount of scholarships and grants you received. Box 5 does not include loans. Scholarships and grants reduce the amount of qualified expenses the student can use when calculating a deduction or credit. If the amount of scholarships and grants you receive in a calendar year is greater than the amount of qualified expenses you are charged in that year, we will not produce a 1098T.
Financial Aid Recipients - The most common reason you may not have a 1098T is because the amount of scholarships and grants that a student receives is more than the amount they were charged. There is nothing wrong with this, it just means that we are not reporting any qualified expenses to the IRS. You may have received a 1098T in prior years but, due to IRS instructions, we no longer provide one if the amount of scholarships and grants you receive in a calendar year is greater than the amount of qualified expenses you are charged in that year.
Graduated (or stopped attending) After the Spring Term - Another reason you may not have a 1098T, is if you graduated in the Spring term. You likely registered and were charged in December, so the information would be included on the prior year’s 1098T.
Spring was Your First Semester at Sac State – Your fee charges must coincide with at least one completed term of attendance in order to qualify for a 1098T.
Enrollment and Grades – You must have completed a term of at least 6 units with passing grades
Fees are Paid by a Third-Party Source – Because you did not pay for the qualified expenses yourself, then you would not be issued a 1098T.
College of Continuing Education – Programs not resulting in a degree do not qualify for a 1098T form. You may qualify for tax credit using your receipts. See the IRS Publication on Lifetime Learning Credit for more information. IRS Publication 970: Chapter 3 - Lifetime Learning Credit
No Social Security Number provided – If you did not provide a valid Social Security Number to the University at the time you applied for admission, then a 1098T would not automatically be issued. If you have a Social Security Number, you are required to provide one in order to receive a 1098T (Section 41201 of the Title V Code of California Regulations, and Section 6109 of the IRS Code).
You may provide it to the Student Services Counter to update your records no later than February 15th. Then inform our office that you have done so in order to have a 1098T issued for the current tax year. Please note that we are not able to issue 1098Ts for prior years.
If you DO NOT have a Social Security Number you may still request a 1098T, as long as you meet all of the other eligibility criteria.
International (foreign) students – If you are not a US resident for tax purposes, then you would not be issued a 1098T.