Office of the Bursar
A Unit of the Corporate Controller's Office
2007 Tax Deduction for Higher Education Expenses
The following Form 1098-T will be sent to Penn State students by February 1, 2008. The IRS will also receive this information. The supplemental information which accompanies your 1098-T form will not be sent to the IRS.
Instructions for Student
Box 1. Shows the total payments received from any source for qualified tuition and related expenses less any related reimbursements or refunds.
Box 2. Shows the total amounts billed for qualified tuition and related expenses less any related reductions in charges.
Box 3. Shows whether your institution changed its method of reporting for 2007. It has changed its method of reporting if the method (payments received or amounts billed) used for 2007 is different than the reporting method used in 2006. You should be aware of this change in figuring your allowable tuition and fees deduction or education credits. The deduction and the credits are allowable only for amounts actually paid during the year and not amounts reported as billed, but not paid, during the year.
Box 4. Shows any adjustment 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 you may claim for the prior year. See Form 8863 or Pub. 970 for more information.
Box 5. Shows the total of all scholarships or grants administered and processed by the eligible educational institution. The amount of scholarships or grants for the calendar year (including those not reported by the institution) may reduce the amount of any allowable tuition and fees deduction or the education credit you may claim for the year.
Box 6. Shows adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. See Pub 970 for how to report these amounts.
Box 7. Shows whether the amount in box 1 or 2 includes amounts for an academic period beginning January-March 2008. See Pub. 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 at the reporting institution. If you are at least a half-time student for at least one academic period that begins during the year, you meet one of the requirements for the Hope credit. You do not have to meet the workload requirement to qualify for the tuition and fees deduction or the lifetime learning credit.
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. If you are enrolled in a graduate program, you are not eligible for the Hope credit, but you may qualify for the tuition and fees deduction or the lifetime learning credit.
Box 10. Shows the total amount of reimbursements or refunds of qualified tuition and related expenses made by an insurer. The amount of reimbursements or refunds for the calendar year may reduce the amount of any allowable tuition and fees deduction or education credit you may claim for the year.
Penn State cannot provide individual tax advice and shall not be liable for damages of any kind in connection with this information. Accordingly, you should consult your tax advisor about your specific circumstances.
This information is available in alternative format upon request.