1098-T Tax Form
The 1098-T Tax Form is used to report qualified education expenses, which Laredo College is required to send to the Internal Revenue Service (IRS) on your behalf. The information on your 1098-T tax form will help you or your tax advisor determine your eligibility for education-related tax credits.
Who is eligible to receive a 1098-T?
Laredo College will send the form to all qualified individuals, including:
- U.S. citizens
- Permanent residents
- International students who have provided a taxpayer identification number (TIN) in their student records.
What charges qualify?
The following are considered qualified education expenses:
- Tuition
- Scholarships and grants (including those applied directly to your tuition).
- Certain required expenses required for enrollment or attendance at an eligible educational institution (e.g., fees for textbooks, supplies, and equipment required for your courses).
These credits apply to qualified education expenses paid for yourself, your spouse, or a dependent for whom you claim an exemption on your tax return.
However, per IRS guidelines, the following expenses do not qualify:
- Room and board
- Insurance and student health fees
- Transportation costs
Exceptions
Please be advised that Laredo College is not required to issue a 1098-T for students with:
- Courses for which no academic credit is offered; (Continuing Education courses).
- Nonresident alien students, unless is requested by the student;
- Students whose qualified tuition and related expenses are entirely waived or paid in full with schoolarships or grants.
- Students for whom Laredo College does not maintain a separate financial account and whose qualified tuition and related expenses are covered by a formal billing arrangement between the institution an the student's employer or governmental entity. (Department of Veterans)
Financial Aid and the 1098-T Form
In the context of the 1098-T form, financial aid refers to any funds or assistance credited to your student account that help pay for qualified educational expenses. This can include:
- Grants: Any need-based or merit-based grants awarded to you by Laredo College, government agencies, or other sources.
- Scholarships: Funds provided by external organizations, foundations, or Laredo College itself to cover tuition or other educational costs.
- Loans: Certain loans, including federal student loans, may be considered part of financial aid if they are disbursed to pay for qualified expenses.
- Employer Assistance: If your employer provides tuition assistance or reimbursement, this may also be included, depending on the circumstances.
- Other Aid: Any other form of financial support that reduces the amount of tuition or fees you owe, such as state-based assistance programs.
The 1098-T will report the total amount of financial aid credited to your account, which may reduce your tax liability by potentially qualifying you for education-related tax credits or deductions (like the American Opportunity Credit or Lifetime Learning Credit).
It's important to note that the financial aid reported on the 1098-T form includes amounts actually credited to your account during the tax year, even if it applies to future semesters.
For more information on what qualifies as an education expense, visit IRS.gov - Publication 970.
What information is reported?
On the 1098-T, Laredo College reports the following student details to the IRS:
- Name
- Taxpayer Identification Number (TIN)
- The total amount of payments toward qualified transactions
- The total amount of financial aid credited to your account
- Adjustments to transactions reported in prior years
- Permanent address
- Whether you were enrolled at least half-time during the calendar year
- Whether any amounts reported pertain to courses starting in the first quarter of the upcoming year.
Please note: Laredo College is required to report all qualified transactions in the calendar year they were posted to your account, regardless of the academic period to which they belong. To ensure the accuracy of the reported amounts, you may wish to refer to your personal records and student account statements.
How do I access my 1098-T?
An electronic version of your 1098-T tax form is available in your PASPort v2.0 account.
Please note: The 1098-T form is issued to students with reportable transactions for the current tax year. Be sure to review the informational note at the top of the page when accessing the form.
To access your current or previous year's 1098-T tax form(s), please follow the steps below:
- Log in to your PASPort v2.0 account (enter your username and password).
- In the "Student Self-Service" card, click "Open Student Dashboard."
- Click the "Tax Notification (1098-T)" link.
- Select the desired Tax Year from the drop-down menu.
If you did not receive a 1098-T form or have any questions, please contact us by email at bursaroffice@laredo.edu or call (956) 721-5112.
Forms Available - January 31
The 1098-T forms are available by January 31.
What if my SSN/TIN on the form is missing or incorrect?
If your SSN/TIN is missing or incorrect, you can update it with the Office of Admissions. After the change is processed by the Office of Admissions, please contact the Bursar's Office for confirmation and to request a revised 1098-T form. Any corrections must be requested no later than the end of February.
Why doesn’t the total in Box 1 match what I paid to Laredo College?
Box 1 reports payments received, including amounts from financial aid and third-party sponsors. The total may not match your records if:
- It includes financial aid, scholarships, or third-party payments
- You paid for expenses like housing, meal plans, or transportation that are not qualified expenses.
- The amount only includes payments posted in the current calendar year, not the academic year.
How is my payment plan reported on my 1098-T?
Your payment plan is not listed on the form. However, actual payments made toward the plan (excluding application and late payment fees) are included in Box 1 if they paid for qualified expenses.
Can you help me determine my eligibility for a credit?
Laredo College is unable to provide tax advice or determine your eligibility for tax credits. You should review IRS Publication 970 or consult with a qualified tax professional for assistance. You can access your on-demand statements and payment history via your student portal.
What if I believe data on my form is incorrect?
Please keep in mind that the 1098-T form includes only qualifying transactions from the calendar year reported. If you have any additional question, please contact us at: bursaroffice@laredo.edu or call us at (956)721 5112
What if there is no form for me?
If your last term of enrollment was the spring semester and your charges were paid before December 31 of the prior year, your 1098-T form would have been issued for the previous year. Please refer to that form along with your records to determine your eligibility for a tax credit.
No 1098-T form is issued if your scholarships, grants, or third-party payments cover all qualified charges, or if there are no net qualified charges.
