2014 Form 1098-T Tuition Payment Statement
Lake Michigan College is offering an environmentally-friendly option to help you go “green” and save time and money. Every year students like you worry about misdirected forms that will delay completing their federal tax returns. Why not try a less stressful approach by choosing to have your 1098-T information delivered electronically?
Federal regulation allows those eligible to receive IRS Form 1098-T the option to receive the form in an electronic format instead of through the mail. In order to exercise this option, eligible recipients must provide consent to receive the form in an electronic format. You can provide this consent via the Lake Michigan College web site. Please complete your electronic enrollment prior to January 23, 2015. With this consent for an online electronic 1098-T, please understand that a paper copy of your form will not be mailed.
If you decline consent for electronic receipt, a paper copy of your 1098-T will be sent to you via First Class US Mail to the address currently on file with Lake Michigan College on or before January 31, 2015.
Regardless of the mode of delivery, electronic or mail, it is important that you verify that your account information on file with Lake Michigan College is accurate. Please access your WaveLink account to view you current mailing address, as well as email address and make any necessary changes. This information will be used when submitting your 1098-T Form to the IRS.
IRS Form 1098-T
In accordance with the Internal Revenue Code, Lake Michigan College is required to file informational returns on Form 1098-T with the IRS. Form 1098-T is used to assist in determining the student’s Hope and Lifetime Learning credits.
Information returns are not required for: (1) students who are enrolled only in courses for which no academic credit is offered, (2) nonresident alien students, unless requested, (3) students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships, fellowships, and/or grants, and (4) students where the College and their employers have formal billing arrangements covering their entire qualified tuition and related expenses.
IRS guidelines require institutions to report either payments received for qualified tuition and related expenses in Box 1 or amounts billed for qualified tuition and related expenses in Box 2. Lake Michigan College has elected to report amounts billed in Box 2.
While it is a good starting point, the 1098-T, as designed and regulated by the IRS, does not contain all of the information needed to claim a tax credit. In addition, under the American Recovery and Reinvestment Act (ARRA), there is a newly created tax credit called the American Opportunity Tax Credit. According to the IRS, the new credit temporarily replaces and expands the previous Hope Credit making it available to a broader range of taxpayers.
Lake Michigan College’s intent is not to offer tax advice but to alert students of the potential educational tax benefits available. We strongly urge you to contact your tax professional for further information. There is no IRS requirement that you must claim the tuition and fees deduction or education credit. Claiming education tax benefits is a voluntary decision for those who qualify.
Questions regarding information reported on the Form 1098-T may be directed to our Lake Michigan College 1098-T Hotline (269) 927-8199 or by email at 1098T@lakemichigancollege.edu.
We hope that electing to receive this important tax information electronically will make filing your federal tax return both quicker and easier.
Included below is a sample 1098-T: