IRS Tuition Statement, Form 1098-T

• Payments made to SBCC    (Box 1)
• Scholarships and grants received     (Box 5)

The rules on what the form includes do not necessarily align with how you, the student-taxpayer, total your education costs and complete your taxes.  For example, students often incur additional "qualified" expenses as a result of their education that may be deductible (see Additional Resources  at the bottom of the page).  The information we provide may help you claim a tax credit (data included in Box 1), or require you to report income (data included in Box 5). See our Box-by-Box Explanations below. 

CARES Stimulus Act disbursements, paid out to students during the Spring and Fall semesters in 2021, are not reportable as income (Box 5).  

CARES ACT Higher Education Emergency Relief Funds (CARES HEERF)
 Sections 3504, 18004, and 18008 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2021, allow higher education institutions to use certain funds allocated by the Department of Education to support students and higher education institutions with expenses and financial needs related to the coronavirus (COVID-19) pandemic.  Based on guidance provided by the Internal Revenue Service (IRS), we have not included any CARES HEERF Funds that were awarded to students in the 1098T.  Other forms of emergency aid, such as The Mountaineer Emergency Fund, are required to be included on IRS Form 1098T.  See IRS Frequently Asked Questions concerning CARES HEERF Fund Awards.

The last reporting change occurred in Calendar Year 2018 when SBCC converted our reporting method from Box 2 to Box 1.

Taxes are always specific to the individual and SBCC does not provide legal or tax advisory services.  All information contained on this website are to support your understanding of Form 1098-T.   

 The dollar amounts reported on your Form 1098-T may assist you in completing IRS Form 8863, which is the form used for calculating the education tax credits that a taxpayer may claim as part of their tax return.  Depending on your income (or your family’s income, if you are a dependent), whether you were considered a full or half-time enrolled student, and the amount of your qualified educational expenses for the year, you may be eligible for a federal education tax credit.

∴  Education tax credits in IRS Publication 970, page 9

Questions regarding the content of a student's 1098T must be directed by the student in person, by phone or campus email.  No information may be provided to students contacting us from non-campus email accounts. 

SBCC follows strict adherence to federal privacy laws, called FERPA Laws.  This means SBCC employees may not answer any questions posed by Parents, Legal Guardians, Accountants or other third party representatives, without direct authorization by the student.  The Cashiers Office does not accept an Authorization for Release of Information completed by any other SBCC Department.  

Due to a change to institutional reporting requirements under federal law, and effective for the tax year 2018, the District began reporting in Box 1 the amount of payments received for qualified tuition and related expenses. In previous years, the student’s 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) Santa Barbara City College billed to the student’s account for the tax year. 

Social Security Numbers or Taxpayer Identification Numbers (TIN) are required for a student to receive a Form 1098-T.

International Students with a TIN or SSN will receive a Form 1098T;  International Students without a TIN or SSN will not.  Courtesy of your International Student Support Program, your ISSP advisors have provided the following information and resources for your Tax Form Requirements:

For noncredit courses within School of Extended Learning (SEL), students will not receive a Form 1098-T. 

The reasons for this are within the rules of what makes up a 1098-T.  Items reportable are payments towards QUALIFIED expenses.  Non-degree course work is not considered a qualified expense.  This means regardless of fees paid towards enrollment or mandatory charges at SEL, those courses are not recognized as qualified so those payments are not reportable.

Specific to the CARES Act funds:  The Federal government has instructed all schools to NOT report CARES grant monies on 1098-T's.  What this means is that our students do not report this money as income. 

All student's educational expenses are as unique as the student.  We encourage our students to seek professional guidance when reporting educational expenses and educational income on their taxes. 

IRS Tax Tip 2021-42: Students and staff should be aware of IRS impersonation email scam

People should be aware of an ongoing IRS-impersonation scam that appears to target educational institutions, including students and staff who have .edu email addresses. The suspect emails display the IRS logo and use various subject lines, such as Tax Refund Payment or Recalculation of your tax refund payment. It asks people to click a link and submit a form to claim their refund.

The scam website requests taxpayers provide their:

• Social Security number
• First name
• Last name
• Date of birth
• Prior year annual gross income
• Driver's license number
• Current address
• City
• State/U.S. territory
• ZIP code/postal code
• Electronic filing PIN

Taxpayers who believe they have a pending refund can easily check on its status using the Where's My Refund tool on IRS.gov.

Here are a few things people can do if they believe they are a target of the scam:

• Report the scam: People who receive this scam email should not click on the link in the email and report it to the IRS. For security reasons, they should save the email using save as and then send that attachment to phishing@irs.gov or forward the email as an attachment to phishing@irs.gov.
• Get an Identity Protection PIN: Taxpayers who believe they may have provided identity thieves with their personal information should consider immediately obtaining an Identity Protection PIN. This is a voluntary opt-in program. An IP PIN is a six-digit number that helps prevent identity thieves from filing fraudulent tax returns in the victim's name.
• Report identity theft: Taxpayers who attempt to e-file their tax return and find it rejected because a return with their SSN has been filed should file a Form 14039, Identity Theft Affidavit to report themselves as a possible identity theft victim. See Identity Theft Central to learn about the signs of identity theft and actions to take.

More information:
Report Phishing and Online Scams
Video: Avoid Phishing Scams

SBCC has filed your Form 1098-T with the personal information you have listed in your campus portal.  It is the students' responsibility to maintain proper records.

Is your Address correct? The address listed on your Form 1098-T is the most current address SBCC has in your student file.  This may be the original address from your application or it may be one you have updated over time.  If your current address does not match that on your Form 1098, you may still file your Form 1098-T with your taxes. There will be no impact with the IRS and your tax credit eligibility with your former address listed on the Form.  However, please update your contact information in the campus portal as soon as you notice this error so future communications, IRS tax forms, diploma/certificates, etc, will all have your most current information.

• Login to the campus portal
• Select Student tab
• Select My Personal Information
• Select My Addresses and Phones
• Under the Mailing section, select EDIT 
• Update your information and select Submit 

The address does not need to be updated on your current Form 1098-T.  

SBCC has filed your Form 1098-T with the personal information you have listed in your campus portal.  It is the students' responsibility to maintain proper records with SBCC.

The possible taxpayer ID a student may use is based on their personal citizenship status: a social security number (SSN), an international taxpayer identification number (ITIN), an alien taxpayer identification number (ATIN) or an entity identification number (EIN).  For security purposes, we only include the last four digits of your taxpayer identification on your Form 1098-T, however in the copy provided to the IRS, we report your full taxpayer identificztion number TIN.

Incorrect Student Tax ID? If this has been left incorrect, it is imperative you correct this immediately.  Please complete Request for Student's or Borrower's Taxpayer Identification Number and Certification to have your taxpayers identification number updated immediately.  Once it has been updated, the college will submit a "Corrected Form 1098-T" to both you and the IRS. For further assistance regarding your taxpayer identification or how to complete and submit the form, please email the Admissions & Records Department.

Box 1 reports the amount paid towards qualified expenses on your SBCC student account.  Payment may have been made by you, or someone on your behalf.  Both are included in this box. Because some of the payments may have been applied to nonqualified expenses,  the amount listed on your Form 1098-T may not match the exact amount paid to SBCC. 

First, the term "qualified expenses" means those expenses the IRS has identified as required for the credit and completion of college-level course work at SBCC.  The value in Box 1 may be reportable as a tax deduction on your annual taxes.  

As a result of paying for both qualified and nonqualified expenses on the same student account, the billed amount of tuition and fees reported in this box may be less than the total amount paid. In addition, the amount reported on your Form 1098-T is reduced by any amounts that were paid out to the student in the form of a check or Direct Deposit.  

Qualified Expenses are less any amounts in scholarships, grants, and third party sponsorships (ex SBCC Foundation Promise) provided through SBCC. If you registered for and paid for Spring 2021 classes in 2019, those payments will NOT be included on the 2021 form.  If you register and pay for Spring 2021 classes in 2021, those payments will be included on the 2021 form.

For example: A reduction due to withdrawal from classes.  The reductions may or may not have resulted in a refund, depending on whether the billed amounts had been paid prior to the reduction.

Box 2 reports the amounts billed by SBCC: This box will be blank.   

Effective for the tax year 2018, and due to institutional reporting requirements changes by federal law, the District began reporting in Box 1 the amount of payments received for qualified tuition and related expenses. In previous years, the student’s 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) Santa Barbara City College billed to the student’s account for the tax year:

Under section 25A of the Internal Revenue Codes and the associated regulations, a taxpayer may take a tuition and fee deduction or claim an education tax credit only with respect to qualified tuition and related expenses actually paid during the calendar year.  

SBCC has not made any changes in reporting methods from last calendar year (Jan-Dec 2020) to this calendar year (Jan-Dec 2021).  This box will be blank.

ADJUSTMENTS MADE FOR PRIOR YEAR

The registration window for every Spring semester opens in the Fall, which is the prior calendar year.  You would have probably already reported this "Box 1" figure in the prior year taxes.  This figure helps the IRS identify any payments made attributable to a prior tax year.   

SCHOLARSHIPS AND GRANTS

This box includes those scholarships and grants that are administered and processed by SBCC Financial Aid Department during the calendar year. The follow are will and will not be included in Box 5:

∴  Beginning with the 2011 tax year, Veterans Education Benefit amounts received (Post 9/11 GI Bill®) will now be included in Box 5. For additional information on Veteran's Education Benefits, please visit either the IRS  or the Department of Veterans Affairs  website.

ADJUSTMENT TO SCHOLARSHIPS OR GRANT FOR A PRIOR YEAR

This box shows any adjustments made to scholarships or grants previously reported on a prior year Form 1098-T. This amount may affect the amount of any allowable tuition and fees deduction or education credit you may claim for the prior year. This also may require you to file an amended income tax return (Form 1040X) for the prior year.

∴   See IRS Form 8863

FUTURE SEMESTER BILL INCLUDED

This box will be checked if you registered and paid for the upcoming Spring semester (January - May 2021) during November or December of 2021.  If you believe the amount reported in Box 1 was incorrect, it may be because the amount was recorded in a prior year.  In this event, that prior year Box 7 would have been checked. You may retrieve your prior year Form 1098-T in your campus portal to confirm this information.

∴ See Pub. 970 for how to report these amounts.

ENROLLMENT STATUS

This box shows whether you are considered to be carrying at least one-half the normal full-time workload for your course of study at SBCC for at least one academic period during the calendar year. 

∴ Hope Tax Credit. You do not have to meet the workload requirement to qualify for the tuition and fee deduction or the lifetime learning credit.

GRADUATE STUDENT STATUS

The college does not offer any graduate degrees, graduate-level certificates, nor other recognized graduate level educational credentials.   This box will not be checked. 

TAKE THE QUIZ

The IRS website offers this interactive Tax Assistant to help determine if you're eligible for certain educational credits or deductions including the American Opportunity Credit, the Lifetime Learning Credit, and the Tuition and Fees Deduction

SBCC must file a Form 1098-T for each student enrolled for the given calendar year and for whom a reportable and eligible transaction is made.  However, the IRS does not require the college to provide a Form 1098-T for:

• Courses for which no academic credit is offered, even if the student is otherwise enrolled in a degree program
• Nonresident alien students

Educational institutions are required to secure social security numbers (SSN) or, if you are not eligible to obtain a SSN, your individual taxpayer identification number (ITIN) in order to file certain information returns with the IRS and to furnish a statement to you. The return that Santa Barbara City College is required to file includes information about qualified tuition and related expenses (Form 1098-T Tuition Statement). The information about your tuition will help to determine whether you, or the person who can claim you as a dependent, may take the tuition and fees deduction or claim an education credit to reduce federal income tax.

If you did not provide your SSN as part of your application for admission process, please download the form W-9S - Request for Student’s or Borrower’s Taxpayer Identification Number and Certification. Submit the completed W-9S form to the SBCC Admissions & Records Office, located in the Student Services Building SS-110.  

Here is the link to obtain the W-9S form here. If you have any questions about completing this form or updating your record, please contact the Admissions & Records Office directly at sbcc.edu/admissions/ or phone (805) 730-4450.

SBCC reports charges billed to the account within each calendar year, January 1st - December 31st.  

For example: The current 1098-T's posted on January 2022 are for the 2021 Calendar year. This primarily includes: Spring 2021, Summer sessions 2021 and Fall 2021.  You will find an overlap in your reporting due to paying for 2021 Spring fees during the the 2020 calendar year, as well as paying for Spring 2022 classes during the Spring 2022 semester. 

Students automatically charge their accounts when registering for classes. If you registered during early registration (typically November or December), your account was charged at that time, making those charges eligible to claim during the calendar year in which they were incurred.

To review information about this Tax Credit option as a result of the Tax Relief Act of 1997, you may access IRS Publication 970, "Tax Benefits for Education".

Yes. Section 6050S of the Internal Revenue Code, as enacted by the Taxpayer Relief Act of 1997, requires institutions to file information returns to assist taxpayers and the Internal Revenue Service in determining eligibility for the American Opportunity and Lifetime Learning education tax credits.  The annual deadline to file the required tax information electronically is March 31, although data may be transmitted earlier. 

There is no requirement for the 1098-T to be attached along with your tax return. This document may be kept for your personal records.

The IRS Form 1098-T is not like the IRS Form W-2 obtained from your employer, which is required to be attached to the tax return filed with the IRS. The primary purpose of the IRS Form 1098-T is to let you know that SBCC has provided required information to the IRS to assist them in determining who may be eligible to claim the tuition and fee deduction or an education credit.

Beginning in 2012, VA Benefits received under the Post 9/11 GI Bill® are now reported as scholarships on the 1098-T form in Box 5. Although VA benefits are not considered a resource when need is calculated, the IRS has recently defined Box 5 to include payments received from governmental entities. The definition of Box 5 is:

The total amount of any scholarships or grants administered and processed during the calendar year for the payment of the student's costs of attendance. Scholarships and grants generally include all payments received from 3rd parties (excluding family members and loan proceeds). This includes payments received from governmental and private entities such as the Department of Defense, civic, and religious organizations, and nonprofit entities.

For more information you may access irs.gov/pub/irs-pdf/i1098et.pdf.

Any further questions can be directed to a representative in the Cashier's Office via email at: cashiers@sbcc.edu.

Special Note for 2018 Tuition Statements:

In previous years, your 1098-T included a figure in Box 2 that represented the qualified tuition and related expenses (QTRE) Santa Barbara City College 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 payments received for qualified tuition and related expenses paid during the calendar (tax year) 2018. 

Please note the amount in Box 1 will NOT be equal to, or sum to, your charges billed for calendar year 2018 because all charges are not considered qualified tuition and related expenses as defined by the Internal Revenue Service.  Qualified Tuition and related expenses are tuition, fees, and course materials required for a student to be enrolled at, or attend, an eligible educational institution.  Non-qualified tuition and related expenses include charges and fees for room, board, insurance, medical expenses (including student health fees), transportation, and similar personal, living, or family expenses.

Santa Barbara City College is unable to provide you with individual tax advice; we encourage you to seek the counsel of an informed tax preparer, adviser, or the IRS at 1-800-829-1040.

Choosing a Tax Professional

Form 8863

Instructions

Form 1040

Instructions

Form 1098-T

Instructions

Form W-9s

Instructions

Publication 970

American Opportunity Credit  

Lifetime Learning Credit

529 Plans: Questions & Answers

529 Plans: Recent Changes