The federal tax code, administered by the Internal Revenue Service (IRS) has provided for a number of education tax benefits. Full information on these tax benefits may be found in IRS Publication 970.
- Drake University does not mail a printed copy of the 1098-T. The 1098-T may be viewed by students in myDrake in the Student Account section by going to the Make a Payment link.
- Parents, even authorized users, cannot view the 1098-T for their student unless the student specifically authorizes the parent to do so. The Student Accounts office will be happy to assist any student needing assisting providing authorization to a parent.
- Please note that the release of 1098-T information is governed by federal privacy laws (FERPA) and cannot be given to parents or tax preparers without the student’s express authorization.
- “When figuring an education credit or the tuition and fees deduction, use only the amounts you paid and are deemed to have paid during the tax year for qualified education expenses. An institution may choose to report either payments received for qualified education expenses during the calendar year (Box 1), or amounts billed for qualified education expenses during the calendar year (Box 2), for qualified education expenses. However, the amounts in Boxes 1 and 2 of Form 1098-T might be different than the amount you actually paid and are deemed to have paid.” (IRS Publication 970)
- The Student Accounts office is happy to assist students to obtain information needed for tax preparation, but cannot provide tax advice. Please consult the Internal Revenue Service and your tax preparer for assistance in preparing your tax return.
- NOTE: BEGINNING WITH THE 2018 CALENDAR YEAR, AS REQUIRED BY CONGRESS AND THE IRS, DRAKE UNIVERSITY WILL BE REPORTING PAYMENTS RECEIVED FOR QUALIFIED TUITION AND RELATED EXPENSES (Box 1) INSTEAD OF QUALIFIED TUITION AND RELATED EXPENSES (Box 2).
Here is some information on what may be found on the 1098-T form:
Box 1 - Payments received for qualified tuition and related expenses (Beginning in 2018):
The IRS defines this as "the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year. The amount reported is the total amount of payments received less any reimbursements or refunds made during the calendar year that relate to the payments received for qualified tuition and related expenses during the same calendar year. The amount reported is not reduced by scholarships and grants reported in box 5."
Payments will be reported on the 1098-T relating only to qualified tuition and related expenses for academic terms that begin during the tax year.
Box 2 – Amounts billed for qualified tuition and related expenses (Through 2017):
- The IRS defines this as “tuition, fees, and course materials required for a student to be enrolled at or attend an eligible educational institution.” Please note that housing costs and books are not included in this amount. This amount will be reduced by any tuition waiver received as an employee benefit at Drake University.
- Beginning with the 2014 tax year, qualified tuition and related expenses will be reported on the 1098-T only for academic terms that begin during the tax year.
Box 4 – Adjustments made for a prior year:
- If there is a change in enrollment information that creates a change in billed tuition after the previous year’s 1098-T was generated that amount will be recorded here.
Box 5 – Scholarships or grants:
- The IRS defines this as “all payments received from 3rd parties (excluding family members and loan proceeds). This includes payments received from governmental and private entities such as the Department of Defense, civic, and religious organizations, and nonprofit entities.”
Box 6 – Adjustments to scholarships or grants for a prior year:
- If there is a change in scholarship information that creates a change in recorded payments after the previous year’s 1098-T was generated that amount will be recorded here.
Here are the answers to some common questions:
- Supplemental information giving a breakdown of the numbers reported on the 1098-T, as well as payment information, may be viewed in myDrake.
- Drake University is required to provide a 1098-T to US citizens enrolled in courses receiving academic credit. Non-US citizens may receive a 1098-T upon request.
- The IRS requires that Drake University include a valid Social Security number on 1098-T statements. On a regular basis, we will contact students for whom we do not have a SSN to request the number. This request will include IRS form W-9S, on which students can report their SSN (or ITIN if appropriate). Alternatively, students can take their Social Security card to the Registrar's Office (104 Old Main) to have the number entered in our records. Please be advised that IRS regulations include a fine charged to students who fail to supply a SSN when requested to do so by Drake. Please note that we may need to request your SSN (or ITIN) even if you have already provided it on an enrollment form for an AEA or other entity. These agencies, for reasons of your privacy, do not transmit these numbers to Drake.
- The PharmD program is a six year program in the School of Pharmacy. As noted on the School of Pharmacy and Health Sciences website, the first two years of the program are classified as pre-pharmacy and the remaining four years are classified as a professional program. Under the federal law governing the 1098-T, professional programs are classified together with graduate programs for tax purposes. As a result, students enrolled in the professional portion of the program will have the “Graduate” box checked on the 1098-T. This is true even if the student is classified as an undergraduate for financial aid purposes.