What happens to the unpaid balance?
What is a Form 1098-T and why did I receive one?
IRS Form 1098-T is a required informational Tuition Payments Statement provided to help you or the person who may claim you as a dependent determine whether you may be able to claim an educational credit on your taxes each year. Spartanburg Methodist College is unable to provide tax advice so please contact your tax advisor to help you understand what this form may mean for you if you receive one.
What if I did not receive a Form 1098-T in the mail or online?
Spartanburg Methodist College is not required, per the IRS, to furnish a Form 1098-T in the following cases:
- Students whose qualified tuition and related expenses are entirely waived or paid entirely with grants/scholarships (Box 5 Scholarships exceeds QTRE Payments in Box 1).
- An enrolled student who is a nonresident alien unless requested by the student.
- Non-degree seeking students
- Students for whom you do not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement between an institution and the student’s employer or a governmental entity, such as the Department of Veterans Affairs or the Department of Defense.
- Payments for courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program.
Why is a 1098-T not generated for Non-Resident Aliens?
Spartanburg Methodist College is not required to supply Non-Resident Alien students with a form 1098-T according to the guidelines established by the Internal Revenue Service. However, one can be generated upon student request and the information will be forwarded to the IRS. A student must have a valid social security or tax identification number (ITIN) on file with the College to have a 1098-t generated.
Why don’t the numbers on Form 1098-T equal the amounts I paid to Spartanburg Methodist College during the year?
There are many reasons for this discrepancy. First, the amount in Box 1 only represents amounts paid for qualified tuition and related expenses (QTRE) and does not include payments made for room and board and certain fees, for example, which, though important, are not considered mandatory education expenses for tax purposes as determined by the IRS. Secondly, Form 1098-T reports amounts that the student paid in a certain year, and the pay date does not necessarily correspond to the dates that the classes were attended.
How to obtain a copy of your 1098T:
- Log into Self-Service
- Click on “Tax Information”
- Give yourself consent to receive form electronically.