Q:  What is a 1098-T tax form?

A:  A 1098-T tax form is filed by Shenandoah University for each student who is enrolled for academic credit during the calendar year and for whom a reportable transaction is made during the calendar year.  This form is to be used by students and/or parents in determining if they qualify for the education deductions and/or tax credits offered by the IRS on their federal income tax returns. For more information on these education deductions and/or tax credits, click here.
                                                                                               (Soon to be updated for 2007)

Q:  What is qualified tuition and related expenses?

A:   Qualified tuition and related expenses are tuition and fees a student must pay to be enrolled at or attend an eligible educational institution.  Shenandoah University’s qualified tuition and related expenses include tuition charges, applied music lesson fees, lab fees, mandatory technology fees, activity fees (condition of enrollment), studio recording fees, and distance education fees.  Qualified expenses do not include: Room and board charges, late registration fees, insurance, books, equipment, transportation, and similar personal, living, or family expenses. 

Q:  Why isn’t there an amount in Box 1 for payments received for qualified tuition and related expenses in the 1098-T tax form?

A: Shenandoah University has the option of printing amounts in either Box 1 or Box 2. The IRS will only allow one method of reporting.  We have selected the option of reporting amounts in Box 2.  Box 2 represents the amounts billed for qualified tuition and related expenses. 

Q:  What do the amount boxes on the 1098-T tax form represent?

A:        Box 2:  Amounts billed during the calendar year for qualified tuition and related expenses.  The amount reported is the total amount billed less any reductions in charges made during the calendar year that relate to the amounts billed for the same calendar year. 

            Box 4:  Reductions in qualified tuition and related expense charges during the calendar year that relate to amounts billed and reported in a prior year.

            Box 5:  Total amount of scholarships or grants that Shenandoah University         administered and processed during the calendar year for the payment of the student’s cost of attendance.

            Box 6:  Reductions to the amount of scholarships or grants that were reported in a         prior year.

Q:  Were all students issued a 1098-T tax form?

 A:  No, 1098-T tax forms were not issued to students who took courses for which no academic credit was offered or to nonresident aliens. These are the exceptions granted to educational institutions by the IRS.

Q:  Why did I receive a 1098-T tax form if I was not enrolled at Shenandoah University during 2007?

 A:  Students who had prior year adjustments to their qualified tuition and related expenses and/or scholarships and grants or future year charges for qualified tuition and related expenses and/or scholarships and grants during 2007 were issued a 1098-T to reflect these transactions. 

            Examples:

1.      A student enrolled in 2006 or prior and had qualified  tuition and related expenses or financial awards reversed in 2007 received a 1098-T tax form with the reductions reported in Box 4 and/or Box 6 of the 1098-T tax form. 

2.      A student who attended Shenandoah University in 2006 or prior and had additional qualified  tuition and related expenses or financial awards added to his/her student account in 2007 received a 1098-T tax form with the additions reported in Box 2 and/or Box 5 of the 1098-T tax form.

3.      A new student enrolled in 2007 for the spring term beginning in January 2008 and had qualified  tuition and related expenses and/or financial aid awards on his/her student account during 2007 received a 1098-T tax form with the amounts reported in Box 2 and/or Box 5 of the 1098-T tax form.  In addition to the amounts being reported on the tax form, a “X” is marked in Box 7 of the tax form to indicate that the amount in Box 2 includes amounts for the academic period beginning in January 2008. 

Q:  I am a US Citizen and I was enrolled for academic credit at Shenandoah University in 2007 but did not receive a 1098-T tax form?

 A:  This would apply to students who were only enrolled at Shenandoah University for the Spring term of 2007 and who had qualified  tuition and related expenses and/or financial aid awards transactions on their student account during the 2006 calendar year, i.e. May 2007 graduates who were billed or had aid applied for their Spring term in November or December 2006.  These students were issued a 1098-T tax form in 2006.  Since there were not reportable transactions in 2007, a 1098-T tax form is not required to be filed.

Q:  I did not pay Shenandoah University any money during 2007, why was I issued a 1098-T tax form?

 A:  The 1098-T tax form is issued to students who had qualified tuition and related expenses and/or financial aid awards during 2007.  Your tuition may have been paid by your employer, student loan, outside scholarship, etc.  The tax form filing is not based on cash paid to Shenandoah University by the taxpayer.  It is based on qualified tuition and related expenses that you were charged on your student account during 2007. You will need to contact your tax accountant to determine your eligibility for taking the tax credits/deductions on your federal income tax return.

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