Why did I receive a 1098-T form? Am I eligible to claim a tax credit?

UT Dallas, as an eligible educational institution, is required by the Internal Revenue Service (IRS) to issue an annual IRS Form 1098-T – Tuition Statement to certain eligible students. You received a 1098-T form because our records show you were enrolled in credit courses at UT Dallas and paid qualified tuition and related expenses to UT Dallas in the tax year in question. UT Dallas uses the “paid” tax reporting method, which means the University will produce a 1098-T form based on the amount of paid qualified tuition and related expenses.

Whether or not you may use Form 1098-T to take advantage of federal education tax credits depends upon your individual facts and circumstances. The University of Texas at Dallas cannot provide individual tax filing advice, so you may want to consult a tax professional to find out more about education tax credits and your eligibility to claim the credits. For more information, visit IRS Publication 970 – Tax Benefits for Higher Education. Please note that nonresident aliens for tax purposes cannot claim any education tax credits on their federal individual income tax return.

How do I obtain my 1098-T form?

1098-T forms will be generated for students who have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) on file with the Office of the Registrar, and who have paid qualified tuition and related expenses in the tax year in question. If you do not have a SSN or ITIN on file with the University, a 1098-T form will not automatically be generated for you. If you would like to obtain a 1098-T form, you will need to submit a SSN Change Request Form and copies of your student ID card and social security card to [email protected].

UT Dallas changed our 1098-T form provider for 2017. 1098-T forms are now available through the Heartland ECSI website. Prior year 1098-T forms will eventually be available through this website as well. If you are unable to retrieve a 1098-T form through this website, please email [email protected] to request a 1098-T form.

Why haven’t I received my 1098-T form?

In certain situations, a 1098-T form may not have been generated for you:

  • If your qualified tuition and related expenses are entirely waived or paid entirely with scholarships, a 1098-T form will not be generated for you.
  • If a valid Social Security Number (SSN) or Individual Tax Identification Number (ITIN) is not on file with the University, you will need to provide a copy of the valid SSN card or ITIN letter to the Office of the Registrar before a 1098-T form can be generated.
  • If you are an international student, a 1098-T form will not be generated for you unless the Bursar Office receives your request and you have a SSN or ITIN on file with the University.
  • If payments for qualified tuition and related expenses were not received in the current tax year, those amounts will not be reflected on the current tax year’s 1098-T. When reviewing your records, please take into consideration the actual payment dates for tuition and related expenses. Please note: When enrolling in a payment plan, your tuition and fees for tax purposes will be considered paid as of the date you sign up for the plan. For example, if you signed up for the Installment plan for the spring 2019 semester in December 2018, your tuition and fees will be considered paid in 2018 and reported on the 1098-T form for year 2018.

If these situations do not apply to you, a 1098-T form should have been generated and mailed to your home address listed in the Galaxy portal. For assistance, please email the Bursar Office at [email protected].

A scholarship is an amount paid or allowed to, or for the benefit of, a student, whether an undergraduate or graduate, to aid such individual in pursuing his studies. A fellowship is an amount paid or allowed to, or for the benefit of, an individual to aid him in the pursuit of study or research.

A scholarship or fellowship payment received by a candidate for a degree at UT Dallas is generally not taxable income to the student if it is used for “qualified education expenses.” Qualified education expenses are defined by the Internal Revenue Service (IRS) and are amounts paid for tuition, fees, and other related expenses for a student that are required for attendance at UT Dallas. Generally speaking, “qualified education expenses” are those amounts for which UT Dallas must receive payment before allowing the student to enroll in classes.

A scholarship or fellowship used for expenses other than “qualified education expenses” is a nonqualified scholarship or fellowship, which is taxable income to the student. If a part of the scholarship or fellowship has been used for nonqualified education expenses, this portion of the scholarship or fellowship is considered a nonqualified scholarship or fellowship and is subject to income tax.

Some examples of nonqualified education expense are:

  • Room and board
  • Travel
  • Research
  • Insurance
  • Medical expenses
  • Clerical help
  • Transportation
  • Equipment or other expenses not required for attendance at UT Dallas

For U.S. citizens, lawful permanent residents (Green Card holders), and resident aliens for tax purposes, a nonqualified scholarship or fellowship is self-reported on the annual income tax return. UT Dallas is not required to report nonqualified scholarship and fellowship amounts on a Form 1099 or other tax reporting document and federal income tax is not withheld on the nonqualified scholarship and fellowship payments. It is the responsibility of the student to keep the necessary records to report the nonqualified scholarship and fellowship amounts on the student’s individual income tax return. It is advised that the students contact their tax advisor regarding the self-reporting and tax consequences.

The scholarship or fellowship recipient who is a nonresident alien student will be contacted by the Tax Compliance Office after the Census day to complete the required tax compliance process. The tax compliance process analyzes the student’s tax residency status, tax withholding rate, eligibility for tax treaty benefits, and generates necessary tax forms for the student to sign. Once the student completes the tax compliance process, the Tax Compliance Office will post a charge called “Non Resident Tax” to the student’s Bursar account to reflect the applicable federal income tax withholding amount.

A nonresident alien student is subject to federal income tax withholding for a nonqualified scholarship or fellowship if:

  1. The student is considered a nonresident alien for tax purposes, and
  2. The tax treaty benefits between the student’s tax residency country and the U.S. are not available for the nonqualified scholarship and fellowship payments.

A nonresident alien student is exempt from federal income tax withholding for a nonqualified scholarship or fellowship if:

  1. The student is considered a resident alien for tax purposes, or
  2. The student is considered a nonresident alien for tax purposes and can claim tax treaty benefits between the student’s tax residency country and the U.S. for the nonqualified scholarship and fellowship payments.

A nonqualified scholarship or fellowship is subject to federal income tax withholding at a rate of 14% for nonresident aliens for tax purposes under a J-1 or F-1 visa. For nonresident aliens for tax purposes under any other type of visa, a nonqualified scholarship or fellowship is subject to federal income tax withholding at a rate of 30%. UT Dallas is required to report nonqualified scholarship and fellowship amounts received by a nonresident alien for tax purposes on Form 1042-S.

IRS Free File is a free online software program available on IRS.gov that taxpayers can use to prepare and file federal individual income tax returns for free using tax-preparation-and-filing software.

IRS Free File has two options: 1) Free File Software, and 2) Free File Fillable Forms. Use Free File Software if your income is $66,000 or less and Free File Fillable Forms if your income is greater than $66,000.

Please note that nonresident aliens for tax purposes cannot use IRS Free File Software or Free File Fillable Forms. Please go to the International Center’s Tax website for information about how to file a federal individual income tax return as a nonresident alien for tax purposes.

Free File Software (Income below $66,000):

Free File Software is a partnership between the IRS and the Free File Alliance, a group of 12 industry-leading private-sector tax preparation companies that have agreed to provide free commercial online tax preparation and electronic filing. To access Free File Software, please go to the IRS’s Free File Software website. Select a brand name software program, create an account and then the software guides you through tax return preparation. If you’re not sure which Free File Software you want to use, you can use the Free File Software Lookup Tool to find the software products that fit your personal tax situation.

Free File Fillable Forms (Income above $66,000):

If your income is more than $66,000, you can use Free File Fillable Forms, a free forms-based tool enabling you to select your income tax forms, enter your tax information, print and e-file your federal income tax return. Free File Fillable Forms, provided by the Free File Alliance, is best for those taxpayers experienced in preparing returns by hand and with limited assistance. If you’re not comfortable completing a paper return by hand, without software to guide you, you should consider another method of filing your income tax return. To access Free File Fillable Forms, please go to the IRS’s Fillable Forms website.

Please note UT Dallas and the IRS do not endorse any individual Free File Alliance company or retain any taxpayer information entered on the Free File site. UT Dallas cannot provide individual tax filing advice, and recommends consulting with a tax professional for specific tax questions and assistance.

The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $58,000 or less, persons with disabilities, and limited English speaking taxpayers who need assistance in preparing their own income tax returns. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals.

The 2019 Volunteer Income Tax Assistance program will not be held on UT Dallas campus. The program will be held off campus at the Assistance Center of Collin County. Here is the location information as well as the hours of operation:

Assistance Center of Collin County
900 18th Street, Plano, Texas 75074

Hours: Mon-Thurs 1-7PM; Sat 9AM-2PM

Individuals and families who make up to $58,000 annually and are interested in having their tax returns prepared for free, which will include the 1040NR, will need to make an appointment. The Assistance Center does not accept walk-ins.

To make an appointment to have your tax return prepared, please use the Assistance Center’s scheduling system

UT Dallas is not sponsoring this service. All questions specifically regarding the VITA program or the tax preparation services provided should be directed to 972-422-1125 x101 or visit the Foundation Communities’ website.

What to Bring

The following items are needed in order for VITA volunteers to prepare your tax return. Please take a moment to browse through the list and make sure that you gather all the necessary paperwork before you come. This is a general list; so if you have any other paperwork that you think is pertinent, please bring them with you to the VITA center.

Required items:

Items listed in bold are required

  • Completed NRA Client Intake Form or US/Resident Client Intake Form. You must bring a completed Client Intake Form. This form is essential to the preparation of your tax return and you must bring it to your appointment.
  • Valid photo identification (i.e., Passport, Driver’s License, State ID or Military ID)
  • Social Security cards or Individual Taxpayer Identification Number (ITIN) assignment letters for everyone on the tax return
  • UTD Comet card
  • Birth dates for everyone to be included on the tax return
  • Nonresident Aliens must bring proof of foreign status (e.g., U.S. visas, Form I-94, Form I-20, Form DS-2019, Form I-797, Employment Authorization Document).
  • All tax documents received. Below are some common tax forms you may receive:
    • Wage and Tax Statement (Form W-2, Form W-2c) from all employers
    • Foreign Person’s U.S. Source Income Subject to Withholding (Form 1042-S)
    • Form 1099 series: Interest Income (1099-INT), Miscellaneous Income (1099-MISC), Dividends and Distribution (1099-DIV), Proceeds From Broker and Barter Exchange (1099-B), Certain Government Payment (1099-G), Distributions From Retirement Plans (1099-R), Cancellation of Debt 1099-C)
    • Form 1098 series: Tuition Statement (1098-T), Student Loan Interest Statement (1098-E), Mortgage Interest Statement (1098)
    • Health Coverage Statements: Health Insurance Marketplace Statement (Form 1095-A), Health Coverage (Form 1095-B), Employer-Provided Health Insurance Offer and Coverage (Form 1095-C)
    • Certain Gambling Winnings (Form W-2G)
  • Personal Records, if applicable:
    • Child and dependent care expenses
    • Education expenses
    • Medical expenses
    • Charitable contributions
    • Retirement contributions
  • Proof of bank account routing and account numbers for direct deposit, such as a blank check

Nice to have items:

  • A copy of last year’s Federal and State tax returns, if available
  • Copies of income transcripts from IRS and state, if applicable
  • Records to substantiate any other items that you wish to include on your tax return

Additional Resources:

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