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FAQ - Form 1098 Instructions

What is the purpose of Form 1098 Instructions?
To report income and other information for all individuals, businesses, and other entities who reported (or were considered to report on behalf of) you; To determine if you qualify for a certain federal tax exemption for certain tax years (see question 13); To correct errors in your return. Which Form 1098 is for? A 1098-T is your Form 1098-T, and it has the same contents as a “real-time” 1098-T. What should you look for in each form? It should also be easy to fill out, and you'll need to enter all information and correct any errors that may be listed. Read through it carefully to ensure you're filling it out legally. (For more, see How to File.) What do I need to show on my return? You can report up to 3 personal exemptions (see Q&A 24), which are tax reductions taken on your individual income taxes. These benefits could reduce your individual tax liability. You must claim them on the form. Read through the instructions carefully to determine if you need to claim a personal exemption, and then fill out and report your entire tax return. If your return isn't completed correctly, we will tell you why. You can't get a refund for not claiming exempt amounts. For more, see Question 12. What should I enter on Form 1098-T? You must keep a copy of your Form 1098-T for your records. You'll use it to: Determine if you qualify for the federal tax credit for student loan interest and repayment. For any errors you made, and to correct them. Report any taxable interest (including qualified tuition or other educational expenses), and any amounts you paid or received without a specific instruction from us. If a loan is an extension of credit (for example, the student loan interest you didn't pay was an extension of credit for tax purposes), fill out and report your Form 1098-T. For more, see Question 21. If you get a loan for a student, fill out and report your Form 1098-T. For more, see Q&A 1, 2, 3. Submit your Form 1098-T to help us verify any refunds you received. We will enter the information you enter on your Form 1098-T into the “Additional Information Needed” field on your refund and credit notice.
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