Tax Issues - 1098T

General Information

As an institution, we cannot provide you with tax advice. The following information is intended to inform students about the benefits and requirements contained in the Tax Relief Act (TRA) of 1997. It is based upon our understanding of the provisions contained in the law and should not be considered an official document. Students and/or parents should seek the advice of a tax consultant for specific questions concerning their eligibility.

TRA '97 added § 25A of the Internal Revenue (IRS) Code providing the Hope Scholarship and Lifetime Learning Credit. These provisions have created several new tax benefits for families who are saving for, or already paying for higher education expenses and loans. For additional information concerning these education credits, please review the IRS Publication 970, Tax Benefits for Education. Also, please consider familiarizing yourself with Instructions for Form 8863, the form used to claim education credits.

Please note Publication 970 states "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.

Access to Individual 1098T Forms

A 1098T form is mailed to all students with a valid Social Security Number on file. The 1098T will be mailed to the student's permanent address on record as of the date the tax (1098T) file is created. SUNY Central Administration contracts with a third party to print and mail the forms, which will be completed on or before Jan. 31. The student will receive them by postal mail shortly thereafter.

Students also have access to their 1098T information online, via their myRedDragon accounts. The form includes not only a representation of the 1098T information submitted to the IRS, but an itemization, by term, of the amounts included on the 1098T. 

Please select the how to link below for detailed instructions on viewing your 1098T:

• View Your 1098T

SUNY Reporting Method

Prior to 2018 colleges and universities were allowed to report either amounts paid for Qualified Tuition and Related Expenses (QTRE) in Box 1 or amounts billed for QTRE in Box 2. Prior to 2018 all SUNY schools used Box 2 reporting (amounts charged/billed to student accounts during a calendar year). Beginning in 2018 all institutions were required to report amounts paid for QTRE in Box 1.

Box Amounts

Box 1  Due to the changes required by the IRS in 2018, Box 1 will include amounts paid toward QTRE. However, due to the change in the reporting method for 2018 and current guidance, this box 1 amount is limited by the amounts billed during the 2023 calendar year. As a result, students who stopped attending SUNY Cortland after the spring 2023 semester may see nothing reported in this box.

Such students are strongly encouraged to consult with a qualified tax preparer or advisor for guidance on eligibility to claim the credit..

Box 2  Will be blank (beginning with the 2018 tax year).

Box 3 Will be blank for the 2023 tax year.

Box 4  Any adjustments made for a prior year for qualified education expenses that were reported on a prior year 1098T will appear in Box 4. These amounts, if any, may affect any allowable education credit you may have claimed for a prior year. If any amount appears in Box 4 of your 1098T, it is strongly advised that you seek the advice of a tax consultant for specific information concerning the handling of prior year adjustments.

Box 5  The amount of grants or scholarships applied as payments on a student account during the tax (calendar) year are reflected in Box 5 of Form 1098T. 

Box 6   Any adjustments to scholarships or grants for a prior year will be reflected in Box 6. These amounts, if any, may affect any allowable education credit you may have claimed for a prior year. If any amount appears in Box 6 of your 1098T it is strongly advised that you seek the advice of a tax consultant for specific information concerning the handling of prior year adjustments.

Box 7  Due to the new IRS guidelines, box 7 will be checked only if you made a payment for a semester scheduled to begin in 2024 (winter session and/or the spring 2024 semester) in 2023.