Purpose of the Form 1098-T

The IRS requires the University to issue Form 1098-T, “Tuition Payments Statement,” to each student by Jan. 31. Form 1098-T is an information tax document to aid taxpayers in determining whether they are eligible to claim a tax deduction or one of the education tax credits on their federal income tax return. Form 1098-T is NOT to be filed with a tax return. Its purpose is not to report scholarship income to the IRS. It is for informational purposes only.

The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863 – the form used for calculating the education tax credits that a taxpayer may claim as part of your tax return.
If you qualify for an educational credit, you should use your personal records and student account activity statements to determine the amounts that you actually paid toward the charges reported on the 1098-T.

Important Dates

1098-T forms will be available online through the ConnectCarolina Student Center before the Jan. 31 mailing deadline. Please allow 10 days for arrival/delivery of 1098-Ts mailed to students who did not choose electronic delivery.

Current Students

Students can access their 1098-T form by logging in to https://connectcarolina.unc.edu/, clicking the Student Center tile, and using drop-down menu under the Student Financials section. Select “View 1098T” and click the arrow button.

If you are a student and also an employee on campus, you can switch to the Student page using the white arrow in the top center of the home page, and Student Center will be an option. In the drop down menu under the Student Financials section, select “View 1098T” and click the arrow button.

Alumni

PLEASE NOTE: It takes approximately 24 hours for your student account information to populate into the Guest ID account. You will need to create the account and log back in later to access your student account information.

Alumni can establish guest access to access their 1098-T forms online. Once you have given the system time to populate your student account information, log back into ConnectCarolina, you can switch to the Student page using the white arrow in the top center of the home page, and Student Center will be an option. In the drop down menu under the Student Financials section, select “View 1098T” and click the arrow button.

On the Form 1098-T, we report the name, the last 4 digits of the social security number and address of students, and indicate whether they were a graduate student and/or at least half-time during the calendar year.

Previously, UNC-CH used the “Amounts Billed” rather than the “Payments Received” methodology.  The “Amounts Billed” methodology is no longer permitted by the IRS.

Box 1 – Payments received for qualified tuition and related expenses

The total in Box 1 includes all payments received by UNC-CH in calendar year 2018 that pay for qualified tuition and related expenses (“QTRE” – see below), as defined by the IRS.  QTRE includes payments from students and families, advance deposits, loans, scholarships, grants, and third party sponsor payments.   Only the portion of the payments applied to QTRE is reported in Box 1.

Box 2 – Amounts billed

In previous years, the 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) billed to your student account for the calendar (tax) year. Due to a change to institutional reporting requirements under federal law, beginning with tax year 2018, we will report in Box 1 the amount of QTRE paid during the year.

Box 3 – Reporting method change

For 2018, Box 3 will be checked because of the change from reporting “amounts billed” to “payments received”.

Box 4 – Adjustments made for a prior year

Box 4 reports adjustments including changes made to items originally reported in Box 1 or Box 2 in a prior calendar year.  In 2018, during the transition to the “Payments Received” method, Box 4 will include amounts reported in Box 2 (“Amounts Billed”) in prior calendar years. However, during the transition year Box 4 will be missing the off-sets to payments that were adjusted from prior years.

Box 5 – Scholarships or Grants

Box 5 includes the amount of all scholarships or grants received in the calendar year reported, regardless of the term for which they were intended. This is because we are required to report the amounts received in the year received. Per IRS regulations, Box 5 includes any payments made by someone other than the student or family. The instructions for this box indicate that this amount, along with those not reported by us, may reduce the deduction or credit.

“Qualified expenses” for this purpose are defined more narrowly than they are for other programs, such as a 529 plan. To assist in supplementing your own records, students can access their account activity by logging in to the ConnectCarolina Student Center and selecting the “Pay Bills/Manage Student Finances” link. Account Activity includes all transactions posted to the student account during the calendar year.

We cannot adjust your 1098-T qualified charges to include transactions specifically excluded by tax credit programs such as room and board. You must use your own records of payments in addition to the information about qualified charges we provide to determine your eligibility for a tax credit in any given calendar year.

Student activity fees and fees for course-related books, supplies and equipment are included in qualified tuition and related expenses only if the fees must be paid to the institution as a condition of enrollment or attendance.

Qualified tuition and related expenses generally do not include:

  • Expenses that relate to any course of instruction or other education that involves sports, games, or hobbies, or
  • Any noncredit course.

However, if the course of instruction or other education is part of the student’s degree program or, in the case of the lifetime learning credit, is taken by the student to acquire or improve job skills, these expenses can qualify.

Certain Required Fees Excluded

The following required fees have been EXCLUDED from the payments received listed in Box 1 based on the University’s interpretation of the definition of “qualified tuition and related expenses” found in the federal regulations:

General Fees

  • FEE Student Health (Student/Campus Health Fee)
  • FEE Safety and Security
  • FEE Student Transit/Safe Ride Fees
  • FEE Student Child Care Service
  • Night Parking Fee
  • Student Health Insurance Fee

Special Fees

  • Late Registration
  • Biostatistics Field Training (PH Field Trng-BIOS) for BIOS 691
  • Health Behavior and Health Education Field Training (PH Field Trng-HBHE) for HBHE 740, HBHE 840, HBHE 841, HBEH 746, HBEH 840 and HBEH 841
  • Maternal and Child Health Field Training (PH Field Trng-MHCH) for MHCH 717, 790 and 795
  • Nutrition Field Training (PH Field Trng-NUTR) for NUTR 650, 710, 730, and 735
  • Public Health Nursing Field Training (PH Field Trng-PHNU) for PHNU886

The 1098-T Payment Summary will list your payment(s) and expenses applied to the payment(s). This is available online with your 1098-T beginning with year 2018.

The IRS requires the student’s social security number be printed on 1098-T forms.

In order for us to issue a 1098T, you will first need to update your SSN/tax ID # with the Registrar’s Office.  To add your tax ID #, complete the change form and return the form to the Registrar in one of the following ways:

  • Deliver in person:
    • Office location: Office of the University Registrar, 3rd Floor SASB North
    • You MUST bring the original card, we cannot accept copies of a card in person.
      • Form does NOT have to be notarized.
  • By Email (UNC email accounts ONLY):
    • If you have a UNC email account, then you can submit the form and documentation by email to registrar@unc.edu. Emails from non-UNC accounts will not be accepted.
      • Form does NOT have to be notarized.
  • By Fax:
    • Fax the notarized form and documentation to 919-962-3349.
  • By Mail:
    • Mail in the notarized form and documentation to the address below:

Office of the University Registrar
Suite 3100 SASB N, CB 2100
Chapel Hill, NC 27599

The majority of international students are *NOT* eligible to claim education expense tax credits on their federal tax forms since, as international students, they do not meet one of these categories:

  • U.S. citizen
  • Permanent resident (P.R.)
  • Married to a citizen or P.R.
  • Can legally be claimed as a dependent by a U.S. citizen or P.R.
  • Have been in the United States long enough to file taxes as a resident for federal tax purposes

Only students in these categories above can claim tax deductions or education tax credits and use the 1098-T. If you are an international student, the University will not file a 1098-T form on your behalf unless you have an individual taxpayer identification number (ITIN) or SSN on your student record. The deadline to provide the ITIN or SSN is Jan. 15.

The University Cashier will issue a W-9S requesting a correct SSN if the one on file is missing (or incorrect according to the IRS). If you receive one from our office, please complete it and return it to the Registrar’s Office in person or via the fax number on the form. Please complete Parts I and III (enter your 10-digit PID under “Tuition account number” in Part III) of the IRS form available online and return it to the Office of the University Registrar in person, by fax or by mail, using the following contact information:

Office of the University Registrar
Campus Box 2100
Chapel Hill, NC 27599
Office location: Third floor of SASB North
Fax: 919-962-1655

For security reasons, please do not send the completed form by email.

Our office cannot provide any tax advice, only confirm and explain what we have reported. For more information about your ability to claim a tax deduction or tax credit, contact a tax professional. Also, you can visit the Internal Revenue Service’s web site at www.irs.gov. IRS Publication 970, “Tax Benefits for Education,” and IRS Bulletin 2006-72 are good resources for information on this topic.

If you have reviewed the 1098-T documentation in ConnectCarolina and believe the transaction amounts on the 1098-T are incorrect, please email cashier@unc.edu and include your PID in the email.