U.S. Tax Benefits and the 1098-T Form
Seattle Pacific University reports required tax information about students billed for at least one credit hour in any academic quarter of a tax year to the IRS annually. We report the amount of payments received for the tax year and provide the IRS Tax Form 1098-T as required by the Taxpayer Relief Act of 1997 as part of this process. This tax form can be used by you or your tax preparer to calculate your eligibility for tax credits and deductions for the IRS tax filing year reported on the form. 1098-T forms are mailed to students for the prior calendar year on or before January 31 of the following year, and are also made available online through your Banner Self-Service account.
Accessing your 1098-T form through Banner is the fastest way to receive this form's information! You can find this in Banner by going to Student Menu -> Student Account Menu -> 1098-T Tax Information.
Seattle Pacific University does not provide tax advice or help related to tax credits or how to claim the credit. Contact your tax adviser or the IRS for questions about the Lifetime Learning Credit or American Opportunity Credit.
Visit the IRS Tax Benefits for Education: Information Center for additional information.
Reading the 1098-T
Box 1
Total amount of qualified tuition and related expenses (QTRE) you paid in the listed calendar (tax) year, less any refunds you received that year.
Box 2
Not currently reported by Seattle Pacific University. The amount here can be calculated by using account activity and/or statements listed in your Banner account (found in Student Menu -> Student Account Menu -> View Invoices and Pay Online) to the total billed expenses in the associated tax year.
Tuition and fees, such as lab, matriculation, study abroad, lesson, nursing, or doctoral fees are examples of Qualified Expenses. By federal regulation, room, board, insurance, transportation, expenses that are not directly billed (books, supplies, equipment), or other personal expenses cannot be included as Qualified Expenses. Please refer to IRS Publication 970 and IRS Form 8863 to calculate your eligibility and/or credits.
Box 3
Not applicable to Seattle Pacific University.
Box 4
Reflects adjustments made to the tax year prior to the one being reported on the form.
Box 5
Reflects scholarships and/or grants posted to the student's Seattle Pacific University student account in the tax year being reported as payment toward the cost of attendance. Included are federal, state, institutional, and/or private scholarships and grants that were posted on the student's account.
If the student received and used a state and/or private scholarship/grant check for the payment of the cost of attendance without posting it directly to the student's account, this amount will need to be added to the amount reported in Box 5.
Box 6
Reflects the adjustments in the year being reported to scholarships and/or grants from the prior tax year.
Box 7
Is checked if any of the expenses reported in Box 1 relate to an academic period that begins in January-March of the year following the tax year being reported on this form (ex., January-March 2023 if this form is reporting information for the 2022 tax year).
Box 8
Is checked if the student was enrolled at half-time status or greater (6+ credits if undergraduate, 3+ if graduate) in the year being reported.
Box 9
Is checked if the student was a graduate student in the year being reported.
Box 10
Is not applicable and not used by eligible higher education institutions.
Tax Credits
American Opportunity Credit
The American Opportunity Credit is a tax credit for qualified education expenses paid for an eligible student, of up to $2,500 per eligible student. The student may be you, your spouse, or your dependent(s). If you take this credit, you may not also claim the Lifetime Learning Credit.
Lifetime Learning Credit
The Lifetime Learning Credit is a tax credit for anyone who takes college classes. It provides a tax credit of up to $2,000 on the first $10,000 of college tuition and fees.
You can claim the Lifetime Learning Credit on your tax return if you, your spouse, or your dependent is enrolled at an eligible educational institution and you were responsible for paying college expenses. You do not need to be enrolled at least half-time. Even if you took only one class, you may take advantage of the Lifetime Learning Credit.
Tax Deductions
Tuition and fees tax deduction
You may be able to deduct qualified education expenses paid during the year for yourself, your spouse, or your dependent(s). The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000.
Student loan interest deduction
Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntary interest payments. You can reduce your income subject to tax by up to $2,500. Your federal loan servicers will provide tax form 1098-E to the IRS and to you with information relevant to this deduction. If you are unsure who your federal loan servicer is, you can find out that information by logging on to your FSA account at StudentAid.gov.
Nonresident, Non-U.S. Citizen Reporting
Seattle Pacific University will provide the federal United States tax form 1042-S to all nonresident, non-US citizens by March 15. Form 1042-S is used to report income paid to a nonresident, non-US citizen regardless of whether the payment is taxable. It can be used to report wages exempt under a tax treaty, wages earned as an independent contractor, royalties, and scholarship or fellowship grants. Students receiving form 1042-S may also receive a W-2, but not all those who receive a W-2 may necessarily receive a 1042-S.
How Eric paid for college
“When it was clear to my parents that I wanted to pursue music, they supported me 100 percent. Money was tight, but my parents would save up so I could have an instrument and travel with my high school band.”
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