1098-T Reporting 

*UMB Student Accounting staff is not permitted to offer any tax guidance or advice regarding the filing of 1098-Ts. 

** The IRS, accountants, taxpayers, and everyone else should not be using these forms verbatim. The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863 — the form used for calculating the education tax credits that a taxpayer may claim as part of your tax return. The responsibility of a properly completed tax form belongs to the taxpayer, not to the colleges and universities. 

IMPORTANT NOTICE: The Student Accounting Office will be closed from the end of the business day on Friday, Dec. 21, through Jan. 2, 2019. All payments mailed to the payment lockbox during this time will be received and posted as of Jan. 2, 2019, and will be reported on your 2019 1098-T as a payment. All online payments made after 2 p.m. on Dec. 28, 2018, will be processed as of Jan. 2, 2019, and will be reported on your 2019 1098-T as a payment.

1. Who gets a 1098-T?

  • Each student who is enrolled and for whom a reportable transaction is made during the calendar year.
  • Upon request, any F-1 Student with an ITIN or SSN.

UMB is not required to provide, and does not provide a 1098-T for the following students:

  • Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships
  • Students for whom you do not maintain a separate financial account and whose tuition and related expenses are covered by a formal billing arrangement between an institution and the student’s employer or a government entity, such as the Department of Veterans Affairs or the Department of Defense


2. How has the reporting method changed for 2018?

Based on a report compiled by the US Inspector General for Tax Administration, it was determined that there was a large amount of fraud as it relates to educational tax credits. This change eliminates this potential for fraudulent activities. 

In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) we billed to your student account for the calendar (tax) year. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, we will report in Box 1 the amount of QTRE you paid during the year. 

Depending on your income (or your family’s income, if you are a dependent), whether you were considered full or half-time enrolled, and the amount of your qualified educational expenses for the year, you may be eligible for a federal education tax credit. (You can find detailed information about claiming education tax credits in IRS Publication 970, page 9.)

*Payments made in December 2017 for the Spring 2018 semester will not be included on your 1098-T, but these payments can be reported. 

**Spring 2018 was billed by UMB in December 2017.  These charges were reported in Box 2 on your 2017 1098-T with Box 7, “Indicates a Future Term beginning January-March,” checked based on the previous reporting method.  In this transitional year, be mindful not to double report payments.  As noted, the responsibility of a properly completed tax form belongs to the taxpayer, not to the colleges and universities.

This means that you will no longer see any amounts in Box 2 (Amounts billed for qualified tuition and related expenses) on your 1098-T form. You will, however, see an amount in Box 1 (Payments received for qualified tuition and related expenses).

3. What is included in Box 1?

Box 1 includes all payments received toward qualifying tuition and related expenses (QTRE).  Qualified tuition and fees include all tuition and fees, excluding the following items:

  • Housing (Pascault Row only)
  • Student Health Insurance
  • Student Accident Insurance
  • Shuttle Fee
  • APTA Membership Fees
  • ASDA Membership Fees
  • Board Examination Prep Fees
  • CNL Certification Exam Fee
  • Dental Hygiene Pins

4. What is reported in Box 5?

Box 5 includes all scholarships and grants paid toward a student’s total cost of attendance.  The total cost of attendance is comprised of tuition, mandatory fees, books and supplies, computer fees, hospitalization insurance, malpractice insurance, room and board, transportation allowance, and fees associated with the Federal Direct Stafford loan and the Federal Direct Grad PLUS loan.  Box 5 includes scholarships/grant payments toward the list of non-QTRE items charged to your tuition account above. 

Examples of Scholarships and Grants reported in Box 5:

  • Corporation or employer under a third-party billing arrangement
  • DoD Tuition Assistance and any other support for servicemembers and dependents
  • Federal Pell, SEOG, or other grants
  • Institution scholarships/grants
  • Private nonprofit or other organization scholarship/grant payments
  • Scholarships restricted to room and board (Academic Affairs Housing Award)
  • State grant, including vocational-rehabilitation
  • Veterans’ benefits (Chapter 31, Chapter 33 (Post 9/11 GI Bill), and Yellow Ribbon)

5. Are scholarships reported in both Box 1 and Box 5?

Scholarships may be reported in both Box 1 and Box 5, as payments from any source, except scholarships that cannot be used to cover qualified tuition and related expenses QTRE, are reported in Box 1 up to the amount of QTRE.