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IRS Form 1098T
Essex County College follows IRS reporting requirements that became effective for Calendar Year 2018 by system generating IRS Form 1098-T annually for students with qualified tuition and related expenses (QTRE) paid in excess of scholarships and grants. Under IRS guidance prior to 2018, Essex County College reported Qualified Tuition and Related Expenses (QTRE) billed.
Per Internal Revenue Service Instructions for Form 8863, education credits are based on the amount of adjusted qualified education expenses paid in 2021 (e.g., checks, cash, credit cards, loans, financial aid) for academic periods beginning in 2021 or the first 3 months of 2022.
To view student tuition account activity including charges and payments, log on to http://www.essex.edu/student-services/ then:
To view and/or print form 1098-T, log on to http://www.essex.edu/student-services/ then:
Essex County College cannot offer tax advice; therefore, we encourage students to consult with a tax advisor to determine eligibility for any educational tax benefit. Additional information regarding Education Tax Benefits can be found at IRS.gov by searching for education tax benefits.
Emergency financial aid received as part of the CARES Act, Coronavirus Response and Relief Supplemental Appropriations Act, or the American Rescue Plan are qualified disaster relief payments under section 139 of the Internal Revenue Code and is not included in your Payments Received (Box 1) unless you authorized such emergency financial aid to be applied against your account balance (net of any associated refund).
Emergency financial aid is not identified as Scholarships or Grants (Box 5) regardless if the emergency financial aid was directly distributed to you or applied against your account. Additional information can be found at: https://www.irs.gov/newsroom/higher-education-emergency-grants-frequently-asked-questions
Please reference the 1098-T Guide for a detailed description of the 1098-T.
OFFICIAL 2022 IRS 1098-T INSTRUCTIONS FOR STUDENTS:
An eligible educational institution, such as a college or university in which you were enrolled and an insurer who makes reimbursements or refunds of qualified tuition and related expenses to you must furnish this statement to you.
You, or the person who can claim you as a dependent, may be able to claim an education credit on Form 1040 or 1040-SR. This statement has been provided to you by Essex County College in which you are enrolled. This statement is required to support any claim for an education credit. Retain this statement for your records.
To see if you qualify for a credit, and for help in calculating the amount of your credit, see Pub. 970, Form 8863, and the Instructions for Form 1040. Also, for more information, go to www.irs.gov/Credits-Deductions/Individuals/Qualified-Ed-Expenses .
Qualified tuition and related expenses. Qualified tuition and related expenses are tuition, fees, and course materials required for a student to be enrolled at Essex County College. The following are not qualified tuition and related expenses.
• Amounts paid for any course or other education involving sports, games, or hobbies, unless the course or other education is part of the student’s degree program or 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.
Academic credit. Academic credit is credit awarded by an eligible educational institution for the completion of coursework leading to a postsecondary degree, certificate, or other recognized postsecondary educational credential.
Student’s taxpayer identification number (TIN). For your protection, this form may show only the last four digits of your TIN (SSN, ITIN, ATIN, or EIN). However, your school has reported your complete TIN to the IRS. Caution: If your TIN does not appear in this box, your school was not able to provide it. Contact your school if you have questions.
Account number. May show an account or other unique number the filer assigned to distinguish your account.
Box 1. Shows the total payments received by an eligible educational institution in 2022 from any source for qualified tuition and related expenses less any reimbursements or refunds made during 2022 that relate to those payments received during 2022.
Box 2. Reserved for future use.
Box 3. Reserved for future use.
Box 4. Shows any adjustment made by an eligible educational institution for a prior year for qualified tuition and related expenses reported on a prior year Form 1098-T. This amount may reduce any allowable education credit that you claimed for the prior year (may result in an increase in tax liability for the year of the refund). See “recapture” in the index to Pub. 970 to report a reduction in your education credit or tuition and fees deduction.
Box 5. Shows the total of all scholarships or grants administered and processed by the eligible educational institution. The amount of scholarships or grants for the calendar year (including those not reported by the institution) may reduce the amount of the education credit you claim for the year. TIP: You may be able to increase the combined value of an education credit and certain educational assistance (including Pell Grants) if the student includes some or all the educational assistance in income in the year it is received. For details, see Pub. 970.
Box 6. Shows adjustments to scholarships or grants for a prior year. This amount may affect the amount of any allowable tuition and fees deduction or education credit that you claimed for the prior year. You may have to file an amended income tax return (Form 1040-X) for the prior year.
Box 7. Shows whether the amount in box 1 includes amounts for an academic period beginning January–March 2023. See Pub. 970 for how to report these amounts.
Box 8. Shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at the reporting institution.
Box 9. Shows whether you are considered to be enrolled in a program leading to a graduate degree, graduate-level certificate, or other recognized graduate-level educational credential.
Box 10. Shows the total amount of reimbursements or refunds of qualified tuition and related expenses made by an insurer. The amount of reimbursements or refunds for the calendar year may reduce the amount of any education credit you can claim for the year (may result in an increase in tax liability for the year of the refund).
Future developments. For the latest information about developments related to Form 1098-T and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form1098T.
Free File Program. Go to www.irs.gov/FreeFile to see if you qualify for no-cost online federal tax preparation, e-filing, and direct deposit or payment options.
Additional Information Regarding IRS Form 1098-T
Depending on your income (or your family’s income, if you are a dependent), whether you were considered full or half-time enrolled, and the amount of your qualified educational expenses for the year, you may be eligible for a federal education tax credit. You can find detailed information about claiming education tax credits in IRS Publication 970.
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.
Note: A Form 1098-T will be system generated only for those individuals who paid qualified tuition and related expenses in excess of scholarships during the calendar year.
Essex County College is unable to provide you with individual tax advice, but should you have questions, you should seek the counsel of an informed tax preparer or adviser.
Below is a blank sample of the Form 1098-T that you may receive in January 2023 for your general reference. For more information about Form 1098-T, visit https://www.irs.gov/pub/irs-pdf/f1098t.pdf.