1098-T Tax Form

Form 1098-T, Tuition Statement

New for Tax Year 2018

The IRS has determined that all institutions must now report amounts paid in Box 1. As a result, beginning in the 2018 tax year (forms generated beginning January 2019), Merrimack College will no longer report information in Box 2, it will remain blank.

The 2018 1098-T statements will be made available online via MyMack by January 31, 2019. The statement will be mailed to the student’s home address on record with the Registrar’s Office. Additional forms after the initial mailing can be accessed by the student via MyMack.

Accessing Your 1098-T Via MyMack

  1. Log in to MyMack.
  2. Click on Student Info on the top menu.
  3. Go to the Student Billing tab.
  4. Select my 1098-T (make sure your pop-up blocker is off)

IMPORTANT NOTE: The Bursar’s Office can only answer questions as to how the form was prepared, and cannot give tax advice. Questions regarding your eligibility should be directed to your tax preparer.

How to Read Your Form 1098-T

Box 1: Payments Received for Qualified Tuition
Box 1 will report payments made toward qualified tuition and education expenses in a calendar year. Room and Board, health insurance and parking fees are not considered qualified education expenses by the IRS, so payments made toward these charges will not be reflected on the 1098-T.

Box 2: Will be blank
The IRS has determined that all institutions must now report amounts paid in Box 1. As a result, beginning in the 2018 tax year (forms generated beginning January 2019), Merrimack College will no longer report information in Box 2, it will remain blank.

Box 3: Checkbox for Change of Reporting Method
The IRS has determined that all schools must now report Box 1 rather than Box 2. For this reason, the 1098- for 2018 will have this box checked.

Box4: Adjustments to Qualified Tuition from a Prior Reporting Period
Any changes to a prior tax year that resulted in a reduction of payments toward previously reported qualified tuition will be reported in Box 4. For example, if the College reports $500 in payments in 2018, but a student retroactively drops a course from 2018 in the 2019 year without fee liability, the dropped value will appear in Box 4.
Note: Since 2018 is the first year of the payment reporting method, Box 4 on 2018 1098-T will be empty.

Box 5: Scholarships and Grants Received
Box 5 reports the amount of all scholarships, grants and fellowships disbursed in a calendar year towards cost of attendance. Scholarships and grants are defined by the IRS, so may include items that you do not recognize as a scholarship or grant— for example, waivers are not reported in Box 5, however military benefits and payments from third party organizations may be. Amount reported on Box 5 may exceed amount reported on Box 1.

Box 6: Adjustments to Scholarships and Grants Reported in a Prior Year
Similar to Box 4, Box 6 reports adjustments to previously reported scholarships and grants from a prior year. If a scholarship or grant is retroactively revoked, the value of the scholarship or grant will be reported in Box 6.

Useful Tips

Given the new process of reporting Box 1, it will be helpful when doing your taxes to have all related tuition statements to identify qualified charges (found in Box 2 in previous years). Your statements for the 2018 tax year can all be found on your Student Account Center (SAC).

How to Access the SAC

Student

  1. Log in to MyMack.
  2. Click on Student Info on the top menu.
  3. Go to the Student Billing tab.
  4. Select Student Account Center. (section: Bursar Bookmarks)
  5. Once in the SAC, select the Statement tab- your statement for each semester will be there to download.
Authorized user
  1. Go to merrimack.afford.com.
  2. Login under Parent/Authorized User
  3. Once in the SAC, select the Statement tab- your student’s statement for each semester will be there to download.

Frequently Asked Questions

A 1098-T is a statement of qualified tuition and related expenses that were billed to your student account and grants or scholarships received during the calendar year. The 1098-T does not indicate your eligibility for tax benefits; rather, it provides you with information about your account which you or your tax preparer may use to determine your education tax benefit eligibility. For more information on these credits visit the IRS website.

There are potentially many reasons for this discrepancy. First, this form does not include payments towards insurance, room and board, which – though important – are not considered mandatory education expenses for many tax purposes. Second, your Form 1098-T reports amounts that are paid to Merrimack in a certain year towards qualified educational expenses billed in the same year. A helpful source of information are your actual billing statements which can be found in your Student Account Center.

The Bursar’s Office can only answer questions as to how the form was prepared, and cannot give tax advice. Questions regarding your eligibility should be directed to your tax preparer.

The 1098-T does not indicate your eligibility for tax benefits. You may be eligible for certain tax incentives even if you are not issued a 1098-T. You may receive a 1098-T but not qualify for education tax benefits. The 1098-T provides information that you may use to determine your eligibility for tax incentives. For assistance in determining your eligibility for education tax benefits, consult IRS Publication 970 and /or your tax preparer.

Your Form 1098-T will be available to you electronically on or before January 31 (or the next business day) through MyMack. Paper forms will also be mailed on or before January 31 (or the next business day) to those students that did not choose to receive their Form 1098-T electronically.