Your 1098-T Tax Statement
Form 1098-T is a tax form that Kenzie Academy from Southern New Hampshire University (SNHU), as an eligible educational institution, is required to provide to students who have qualifying educational expenses within the tax year. Form 1098-T is only available to you by mail.
Why did I receive a 1098-T?
Kenzie Academy from SNHU is required to provide you with a 1098-T Tuition Statement by January 31 of each year if you had qualifying educational expenses at the university the prior year.
The 1098-T statement reports information that may have an impact on your taxes (or your parents’ taxes if you can be claimed as a dependent). This IRS form is used to calculate educational tax credits by telling you how much you paid for “qualified educational expenses” within the previous year. Your 1098-T will also show the scholarship benefits you received within that year.
I haven’t received my 1098-T
The 1098-T statement is available no later than January 31 of each year. If you have not received your 1098-T and you think you should receive one, please contact the Student Accounts team at email@example.com.
Can I get a 1098-T statement from a prior year?
Please contact firstname.lastname@example.org for more information.
What should I do with my 1098-T?
You should provide your 1098-T to your tax preparer, in addition to copies of receipts for any Kenzie Academy from SNHU billing or qualified educational expense-related purchases made within the tax year.
If you prepare your own tax returns, you should keep your 1098-T statement with your other tax documents. Education tax credits are calculated and reported on Form 8863, Education Tax Credits. See Form 8863 and its instructions on the IRS website for additional information.
What are Education Tax Credits?
There are two education tax credits that you (or your parents if you can be claimed as a tax dependent) might be eligible for based on your qualified expenses and overall income.
- The American Opportunity Tax Credit can be worth up to $2,500 and is partially refundable (up to 40 percent). This means that even if a qualifying taxpayer owed no other taxes, he or she could get a refund of up to $1,000. This credit only applies to undergraduate tuition and is limited to four years. A student must be enrolled at least half-time in an eligible degree program to claim this credit. Half-time status is determined by Kenzie Academy from SNHU and shown on Form 1098-T.
- Both graduate and undergraduate students may qualify for the Lifetime Learning Credit, which does not require a specific course load or enrollment in a degree program. This is a credit of up to $2,000 and is not refundable
See IRS Publication 970 for more information. Receipt of Form 1098-T does not indicate eligibility for a tax credit. Please consult your tax advisor.
What are Qualified Educational Expenses?
Qualified educational expenses are tuition and other related costs required for enrollment or attendance at an eligible educational institution. Related expenses are typically required fees and course materials associated with your education.
An eligible institution is considered any college, university, vocational school, or other institution that is eligible to participate in the Department of Education’s student aid programs.
What are some examples of charges that are not Qualified Educational Expenses?
- Amounts paid for any course or other education involving sports, games, or hobbies (unless the course or other education is part of your degree program or is taken to acquire or improve job skills)
- Charges and fees for room, board, insurance, medical expenses (including student health fees), transportation, and similar personal, living, or family expenses
Are all Qualified Educational Expenses reported on the 1098-T statement?
The only qualified educational expenses that are reported on your 1098-T statement are those that are billed by and purchased from Kenzie Academy from SNHU. However, expenses for books, supplies, and equipment needed for a course are considered qualified educational expenses, even if they weren’t billed by or purchased from Kenzie Academy from SNHU.
If you bought required course materials through our online bookstore, it will be reported on your 1098-T. However, if you bought material elsewhere, it would not be reported on your 1098-T statement.
The cost of the required course material purchased from a place other than Kenzie Academy from SNHU’s online bookstore should be added to the amount reported in Line 1 of your 1098-T statement when you or your tax preparer calculate your educational tax credit.
I paid for a class this calendar year that does not start until the next calendar year. Is that reported on my 1098-T statement?
If you registered, were billed, and paid for expenses in 2022 for courses starting between January 1 and March 31, 2023, payments related to the total amount of qualified tuition and expenses would be included in your 1098-T for 2022. In this case, Box 7 will also be checked.
I paid for a class this calendar year that does not start until after March 31 of the next calendar year. On which year’s tax return can I claim those expenses?
These expenses will not show up on any 1098-T, as qualified expenses only include amounts paid in the calendar year for expenses incurred in that same calendar year and some prepaid expenses.
These prepaid expenses must be for an academic period that begins in the first three months of the following calendar year. For example, qualified expenses paid in 2022 for an academic period that begins in the first three months of 2023 can only be used to calculate an education credit for 2022.
In the prior year, I paid for qualified expenses that weren’t included in my 1098-T for that year. Because they weren’t reportable on the 1098-T for that year, I didn’t include them in my calculations for last year’s taxes. Can I claim those qualified education expenses on this year’s return?
No. When determining your individual educational tax credit for a given year, you can only claim amounts paid in that same year. You cannot claim amounts paid in a prior or future year. See IRS Publication 970 for more information.
Then how can I claim those expenses on my tax return?
The only way to claim those expenses is by filing an amended return for the tax year the expenses were paid. An individual income tax return can be amended using Form 1040X. SNHU is not able to provide tax advice about filing an amended return. Please consult a tax professional.
Get In Touch With Us
If you have any questions regarding your 1098-T statement, please reach out to email@example.com. Hours of operation are Monday to Friday, from 8 am to 4:30 pm (ET).