Campbellsville University is an eligible educational institution as described in section 481 of the Higher Education Act of 1965 as in effect on August 5, 1997, and is eligible to participate in the Department of Education's student aid programs. As such, the Internal Revenue Service requires us to file a Form 1098-T for each student enrolled for whom a reportable transaction is made.
Based upon a selection made with the IRS, Campbellsville University reports amounts billed, rather than payments received, for qualified tuition and related expenses. Qualified tuition and related expenses are tuition and fees billed to a student to enroll or attend an eligible educational institution.
The 1098-T reports information on the filer (CU) and the student, with corresponding federal identification numbers, and contains 10 numbered boxes of information needed to complete personal income tax returns. The boxes that will apply to most CU students are as follows:
Box 2: Amounts Billed for Qualified Tuition and Related Expenses
Box 5: Scholarships or Grants
Box 8: Check if at Least Half-Time Student
Box 9: Check if is Graduate Student
CU provides a calendar-year statement of account, mailed with the 1098-T, to every student. Transactions on the statement can be reviewed to confirm the accuracy of reportable items.
Box 2, Amounts Billed for Qualified Tuition and Related Expenses, includes amounts billed during the calendar year for qualified tuition and related expenses.
Qualified tuition and related expenses include:
Student Fee charges
On-line Course Fee charges
Course surcharges (rare)
The term "qualified tuition and related expenses" has been expanded to include expenditures for 'course materials.' For this purpose, the term 'course materials' means books, supplies and equipment needed for a course of study.
Because Campbellsville University allows students to charge both qualified and non-qualified expenses at the campus bookstore, none of those charges have been included in Box 2. The student is responsible for determining the amount paid for course materials under the new guidelines.
Qualified tuition and related expenses do not include:
Student Health Insurance charges
Box 5, Scholarships or Grants, includes the total amount of any scholarships or grants that CU administered and processed during the calendar year for the payment of a student's cost of attendance.
In general, scholarships and grants received to assist an individual with payment of educational expenses are not considered taxable income. Tax-free educational assistance reduces the cash payment of the student for qualified tuition and related expenses.
Subtracting Box 5 (tax-free educational assistance) from Box 2 (qualified tuition and related expenses) will normally result in the cash payment made by the student for qualified tuition and related expenses. Loan proceeds used to pay educational expenses are considered paid on the date the funds are applied to a student's account, and are treated as cash payments made by the student for income tax purposes.